Maryland | 001-36008 | 46-2024407 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
11620 Wilshire Boulevard, Suite 1000, Los Angeles, California | 90025 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated February 18, 2016 |
99.2 | Fourth Quarter 2015 Supplemental Financial Report |
Rexford Industrial Realty, Inc. | |
February 18, 2016 | /s/ Michael S. Frankel |
Michael S. Frankel Co-Chief Executive Officer (Principal Executive Officer) | |
Rexford Industrial Realty, Inc. | |
February 18, 2016 | /s/ Howard Schwimmer |
Howard Schwimmer Co-Chief Executive Officer (Principal Executive Officer) |
Exhibit Number | Description | |
99.1 | Press Release dated February 18, 2016 | |
99.2 | Fourth Quarter 2015 Supplemental Financial Report |
• | Recurring Funds From Operations (FFO) of $0.21 per diluted share for the quarter ended December 31, 2015. Including non-recurring items, FFO was $0.21 per diluted share. |
• | Total rental revenues of $26.1 million, which represents an increase of 34.5% year-over-year. Property Net Operating Income (NOI) of $18.9 million, which represents an increase of 36.3% year-over-year. |
• | Same Property Portfolio NOI increased 4.8% in the fourth quarter of 2015 compared to the fourth quarter of 2014, driven by a 2.8% increase in Same Property Portfolio total rental revenue and a 2.2% decrease in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 7.5% compared to the fourth quarter 2014. |
• | Signed new and renewal leases totaling 581,811 rentable square feet. Rental rates on new and renewal leases were 12.9% higher than prior rents on a GAAP basis and 6.4% higher on a cash basis. |
• | Stabilized Same Property Portfolio occupancy was 95.6%, which represents an increase of 290 basis points year-over-year. Total Same Property Portfolio occupancy was 94.4%, which represents an increase of 160 basis points year-over-year. |
• | At December 31, 2015, the consolidated portfolio, which increased in size by two million square feet during 2015, was 89.2% occupied, which represents a decrease of 150 basis points year-over-year. At December 31, 2015, the consolidated portfolio, excluding repositioning assets and space aggregating 905,727 rentable square feet, was 96.5% occupied. |
• | During the fourth quarter 2015, the Company acquired six industrial properties for an aggregate cost of $78.5 million. For the full year, the Company has acquired 21 properties for an aggregate cost of $247.6 million. |
December 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Land | $ | 492,704 | $ | 368,033 | |||
Buildings and improvements | 650,075 | 530,191 | |||||
Tenant improvements | 28,977 | 21,404 | |||||
Furniture, fixtures, and equipment | 188 | 188 | |||||
Construction in progress | 16,822 | 10,646 | |||||
Total real estate held for investment | 1,188,766 | 930,462 | |||||
Accumulated depreciation | (103,623 | ) | (76,884 | ) | |||
Investments in real estate, net | 1,085,143 | 853,578 | |||||
Cash and cash equivalents | 5,201 | 8,606 | |||||
Note receivable | — | 13,137 | |||||
Rents and other receivables, net | 3,040 | 1,812 | |||||
Deferred rent receivable, net | 7,827 | 5,165 | |||||
Deferred leasing costs, net | 5,331 | 3,608 | |||||
Deferred loan costs, net | 1,445 | 2,045 | |||||
Acquired lease intangible assets, net | 30,383 | 28,136 | |||||
Acquired indefinite-lived intangible | 5,271 | 5,271 | |||||
Other assets | 5,523 | 4,699 | |||||
Acquisition related deposits | — | 2,110 | |||||
Investment in unconsolidated real estate entities | 4,087 | 4,018 | |||||
Total Assets | $ | 1,153,251 | $ | 932,185 | |||
LIABILITIES & EQUITY | |||||||
Liabilities | |||||||
Notes payable | $ | 418,154 | $ | 356,362 | |||
Interest rate swap liability | 3,144 | 1,402 | |||||
Accounts payable, accrued expenses and other liabilities | 12,631 | 10,053 | |||||
Dividends payable | 7,806 | 5,244 | |||||
Acquired lease intangible liabilities, net | 3,387 | 3,016 | |||||
Tenant security deposits | 11,539 | 8,768 | |||||
Prepaid rents | 2,846 | 1,463 | |||||
Total Liabilities | 459,507 | 386,308 | |||||
Equity | |||||||
Rexford Industrial Realty, Inc. stockholders' equity | |||||||
Common Stock, $0.01 par value 490,000,000 authorized and 55,598,684 and 43,702,442 outstanding as of December 31, 2015 and 2014, respectively | 553 | 434 | |||||
Additional paid in capital | 722,722 | 542,318 | |||||
Cumulative distributions in excess of earnings | (48,103 | ) | (21,673 | ) | |||
Accumulated other comprehensive loss | (3,033 | ) | (1,331 | ) | |||
Total stockholders' equity | 672,139 | 519,748 | |||||
Noncontrolling interests | 21,605 | 26,129 | |||||
Total Equity | 693,744 | 545,877 | |||||
Total Liabilities and Equity | $ | 1,153,251 | $ | 932,185 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
RENTAL REVENUES | |||||||||||||||
Rental revenues | $ | 22,665 | $ | 16,719 | $ | 81,114 | $ | 56,636 | |||||||
Tenant reimbursements | 3,074 | 2,417 | 10,479 | 7,661 | |||||||||||
Other income | 320 | 234 | 1,013 | 307 | |||||||||||
TOTAL RENTAL REVENUES | 26,059 | 19,370 | 92,606 | 64,604 | |||||||||||
Management, leasing and development services | 105 | 206 | 584 | 860 | |||||||||||
Interest income | — | 282 | 710 | 1,117 | |||||||||||
TOTAL REVENUES | 26,164 | 19,858 | 93,900 | 66,581 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Property expenses | 7,118 | 5,477 | 25,000 | 18,382 | |||||||||||
General and administrative | 3,952 | 3,486 | 15,016 | 12,144 | |||||||||||
Depreciation and amortization | 10,821 | 8,443 | 41,837 | 28,608 | |||||||||||
TOTAL OPERATING EXPENSES | 21,891 | 17,406 | 81,853 | 59,134 | |||||||||||
OTHER EXPENSE | |||||||||||||||
Acquisition expenses | 528 | 627 | 2,136 | 2,038 | |||||||||||
Interest expense | 2,724 | 1,655 | 8,453 | 6,400 | |||||||||||
TOTAL OTHER EXPENSE | 3,252 | 2,282 | 10,589 | 8,438 | |||||||||||
TOTAL EXPENSES | 25,143 | 19,688 | 92,442 | 67,572 | |||||||||||
Equity in income (loss) from unconsolidated real estate entities | 35 | (25 | ) | 93 | (29 | ) | |||||||||
Gain from early repayment of note receivable | — | — | 581 | — | |||||||||||
Loss on extinguishment of debt | — | — | (182 | ) | — | ||||||||||
Loss on sale of real estate | — | — | — | (150 | ) | ||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,056 | 145 | 1,950 | (1,170 | ) | ||||||||||
DISCONTINUED OPERATIONS | |||||||||||||||
Income from discontinued operations before gain on sale of real estate | — | — | — | 21 | |||||||||||
Gain on sale of real estate | — | — | — | 2,125 | |||||||||||
INCOME FROM DISCONTINUED OPERATIONS | — | — | — | 2,146 | |||||||||||
NET INCOME | 1,056 | 145 | 1,950 | 976 | |||||||||||
Less: net income attributable to noncontrolling interest | (40 | ) | — | (76 | ) | (80 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 1,016 | 145 | 1,874 | 896 | |||||||||||
Less: earnings attributable to participating securities | (71 | ) | (38 | ) | (223 | ) | (102 | ) | |||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 945 | $ | 107 | $ | 1,651 | $ | 794 | |||||||
Net income available to common stockholders per share - basic and diluted | $ | 0.02 | $ | — | $ | 0.03 | $ | 0.02 | |||||||
Same Property Portfolio Statement of Operations: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||
Rental Revenues | |||||||||||||||||||||||||||
Rental income | $ | 12,533 | $ | 12,080 | $ | 453 | 3.8% | $ | 48,545 | $ | 46,423 | $ | 2,122 | 4.6% | |||||||||||||
Tenant reimbursements | 1,593 | 1,671 | (78 | ) | (4.7)% | 5,976 | 6,106 | (130 | ) | (2.1)% | |||||||||||||||||
Other income | 228 | 213 | 15 | 7.0% | 600 | 282 | 318 | 112.8% | |||||||||||||||||||
Total Rental Revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,811 | 2,310 | 4.4% | |||||||||||||||||||
Interest income | — | — | — | 0.0% | — | 1 | (1 | ) | (100.0)% | ||||||||||||||||||
Total Revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,812 | 2,309 | 4.4% | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Property expenses | 3,876 | 3,964 | (88 | ) | (2.2)% | 14,950 | 15,162 | (212 | ) | (1.4)% | |||||||||||||||||
Depreciation and amortization | 4,469 | 4,855 | (386 | ) | (8.0)% | 18,343 | 21,103 | (2,760 | ) | (13.1)% | |||||||||||||||||
Total Operating Expenses | 8,345 | 8,819 | (474 | ) | (5.4)% | 33,293 | 36,265 | (2,972 | ) | (8.2)% | |||||||||||||||||
Other Expense | |||||||||||||||||||||||||||
Interest expense | — | 185 | (185 | ) | (100.0)% | 549 | 1,062 | (513 | ) | (48.3)% | |||||||||||||||||
Total Other Expense | — | 185 | (185 | ) | (100.0)% | 549 | 1,062 | (513 | ) | (48.3)% | |||||||||||||||||
Total Expenses | 8,345 | 9,004 | (659 | ) | (7.3)% | 33,842 | 37,327 | (3,485 | ) | (9.3)% | |||||||||||||||||
Net Income | $ | 6,009 | $ | 4,960 | $ | 1,049 | 21.1% | $ | 21,279 | $ | 15,485 | $ | 5,794 | 37.4% | |||||||||||||
Same Property Portfolio NOI Reconciliation: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
NOI | 2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | |||||||||||||||||||
Net Income | 6,009 | 4,960 | 21,279 | 15,485 | |||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||
Interest expense | — | 185 | 549 | 1,062 | |||||||||||||||||||||||
Depreciation and amortization | 4,469 | 4,855 | 18,343 | 21,103 | |||||||||||||||||||||||
Deduct: | |||||||||||||||||||||||||||
Interest income | — | — | — | 1 | |||||||||||||||||||||||
NOI | $ | 10,478 | $ | 10,000 | $ | 478 | 4.8% | $ | 40,171 | $ | 37,649 | $ | 2,522 | 6.7% | |||||||||||||
Straight-line rents | (149 | ) | (438 | ) | (569 | ) | (1,015 | ) | |||||||||||||||||||
Amort. above/below market leases | 36 | 80 | 191 | 370 | |||||||||||||||||||||||
Cash NOI | $ | 10,365 | $ | 9,642 | $ | 723 | 7.5% | $ | 39,793 | $ | 37,004 | $ | 2,789 | 7.5% |
Same Property Portfolio NOI Reconciliation Continued: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||
Rental income | $ | 12,533 | $ | 12,080 | $ | 453 | 3.8% | $ | 48,545 | $ | 46,423 | $ | 2,122 | 4.6% | |||||||||||||
Tenant reimbursements | 1,593 | 1,671 | (78 | ) | (4.7)% | 5,976 | 6,106 | (130 | ) | (2.1)% | |||||||||||||||||
Other income | 228 | 213 | 15 | 7.0% | 600 | 282 | 318 | 112.8% | |||||||||||||||||||
Total rental revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,811 | 2,310 | 4.4% | |||||||||||||||||||
Property expenses | 3,876 | 3,964 | (88 | ) | (2.2)% | 14,950 | 15,162 | (212 | ) | (1.4)% | |||||||||||||||||
NOI | $ | 10,478 | $ | 10,000 | $ | 478 | 4.8% | $ | 40,171 | $ | 37,649 | $ | 2,522 | 6.7% | |||||||||||||
Straight-line rents | (149 | ) | (438 | ) | 289 | (66.0)% | (569 | ) | (1,015 | ) | 446 | (43.9)% | |||||||||||||||
Amort. above/below market leases | 36 | 80 | (44) | (55.0)% | 191 | 370 | (179 | ) | (48.4)% | ||||||||||||||||||
Cash NOI | $ | 10,365 | 9,642 | $ | 723 | 7.5% | $ | 39,793 | 37,004 | $ | 2,789 | 7.5% |
Same Property Portfolio Occupancy: | |||||||||||
December 31, 2015 | December 31, 2014 | Change (ppt) | |||||||||
Same Property Portfolio | Stabilized Same Property Portfolio(1) | Same Property Portfolio | Stabilized Same Property Portfolio(1) | Same Property Portfolio | Stabilized Same Property Portfolio(1) | ||||||
Occupancy: | |||||||||||
Los Angeles County | 94.8% | 96.9% | 96.0% | 95.9% | (1.2)% | 1.0% | |||||
Orange County | 96.1% | 96.1% | 96.2% | 96.2% | (0.1)% | (0.1)% | |||||
San Bernardino County | 96.2% | 96.2% | 87.6% | 87.6% | 8.6% | 8.6% | |||||
Ventura County | 95.5% | 95.5% | 90.5% | 90.5% | 5.0% | 5.0% | |||||
San Diego County | 89.1% | 89.1% | 81.7% | 81.7% | 7.4% | 7.4% | |||||
Total/Weighted Average | 94.4% | 95.6% | 92.8% | 92.7% | 1.6% | 2.9% |
(1) | Reflects the occupancy of our Same Property Portfolio adjusted for space aggregating 72,000 rentable square feet that was undergoing repositioning during the three months ended December 31, 2015. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014(1) | 2015 | 2014(1) | ||||||||||||
Funds From Operations (FFO) | |||||||||||||||
Net income | $ | 1,056 | $ | 145 | $ | 1,950 | $ | 976 | |||||||
Add: | |||||||||||||||
Depreciation and amortization, including amounts in discontinued operations | 10,821 | 8,443 | 41,837 | 28,615 | |||||||||||
Depreciation and amortization from unconsolidated joint ventures | 5 | 66 | 57 | 357 | |||||||||||
Loss on sale of real estate | — | — | — | 150 | |||||||||||
Deduct: | |||||||||||||||
Gains on sale of real estate | — | — | — | 2,125 | |||||||||||
Gains on sale of real estate from unconsolidated joint ventures | — | 3 | — | 3 | |||||||||||
FFO | $ | 11,882 | $ | 8,651 | $ | 43,844 | $ | 27,970 | |||||||
Company share of FFO (2) | $ | 11,365 | $ | 8,145 | $ | 41,878 | $ | 25,539 | |||||||
FFO | $ | 11,882 | $ | 8,651 | $ | 43,844 | $ | 27,970 | |||||||
Add: | |||||||||||||||
Non-recurring legal fees | — | 205 | 345 | 585 | |||||||||||
Acquisition expenses | 528 | 627 | 2,136 | 2,038 | |||||||||||
Recurring FFO | $ | 12,410 | $ | 9,483 | $ | 46,325 | $ | 30,593 | |||||||
Company share of Recurring FFO(3) | $ | 11,870 | $ | 8,932 | $ | 44,245 | $ | 27,947 | |||||||
Weighted-average shares outstanding - basic and diluted | 55,244,664 | 43,234,602 | 54,024,923 | 31,953,506 | |||||||||||
Weighted-average diluted shares and units | 57,289,069 | 45,705,769 | 56,203,681 | 34,820,909 |
(1) | For comparability to current period presentation, Company Share of FFO and Recurring FFO for the three months ended December 31, 2014 and the year ended December 31, 2014, has been adjusted to reflect the allocation of FFO to participating securities (unvested shares of restricted stock). |
(2) | Company share of FFO excludes the following: (i) FFO attributable to noncontrolling interests of $418 and $468 for the three months ended December 31, 2015 and 2014, respectively, and $1,644 and $2,329 for the year ended December 31, 2015 and 2014, respectively, and (ii) FFO attributable to participating securities of $99 and $38 for the three months ended December 31, 2015 and 2014, respectively, and $322 and $102 for the year ended December 31, 2015 and 2014, respectively. |
(3) | Company share of Recurring FFO excludes the following: (i) Recurring FFO attributable to noncontrolling interests of $437 and $513 for the three months ended December 31, 2015 and 2014, respectively, and $1,741 and $2,544 for the year ended December 31, 2015 and 2014, respectively, and (ii) Recurring FFO attributable to participating securities of $103 and $38 for the three months ended December 31, 2015 and 2014, respectively, and $339 and $102 for the year ended December 31, 2015 and 2014, respectively. |
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 |
Debt Covenants | 18 |
Portfolio Data: | |
Portfolio Overview | 19 |
Occupancy and Leasing Trends | 20 |
Leasing Statistics | 21 |
Top Tenants and Lease Segmentation | 22 |
Capital Expenditure Summary | 23 |
Properties Under Repositioning | 24 |
Acquisitions and Dispositions Summary | 25 |
Net Asset Value Components | 26 |
Fixed Charge Coverage Ratio | 27 |
Definitions / Discussion of Non‐GAAP Financial Measures | 28-29 |
Fourth Quarter 2015 | Page 2 | |
Supplemental Financial Reporting Package |
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 | ||
Stephen Swett | ||
www.icrinc.com | ||
212-849-3882 |
Equity Research Coverage | ||
Bank of America Merrill Lynch | Juan Sanabria | |
Citigroup Investment Research | Emmanuel Korchman | |
D.A Davidson | Barry Oxford | |
J.P. Morgan | Michael W. Mueller, CFA | |
Jeffries LLC | Jonathan Peterson | |
Wells Fargo Securities | Brendan Maiorana, CFA | |
Wunderlich Securities | Craig Kucera |
Fourth Quarter 2015 | Page 3 | |
Supplemental Financial Reporting Package |
Financial and Portfolio Highlights and Common Stock Data (1) | ||
(in thousands except share and per share data and portfolio statistics) |
Three Months Ended | ||||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | ||||||||||||||||
Financial Results: | ||||||||||||||||||||
Total rental revenues | $ | 26,059 | $ | 23,335 | $ | 22,281 | $ | 20,931 | $ | 19,370 | ||||||||||
Net income | $ | 1,056 | $ | 617 | $ | 196 | $ | 81 | $ | 145 | ||||||||||
Net income per common share-basic and diluted | $ | 0.02 | $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||
Company share of Recurring FFO | $ | 11,870 | $ | 11,201 | $ | 11,089 | $ | 10,085 | $ | 8,932 | ||||||||||
Recurring FFO per common share-basic and diluted | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.21 | ||||||||||
Company share of FFO | $ | 11,365 | $ | 10,780 | $ | 10,220 | $ | 9,513 | $ | 8,145 | ||||||||||
FFO per common share-basic and diluted | $ | 0.21 | $ | 0.20 | $ | 0.19 | $ | 0.19 | $ | 0.19 | ||||||||||
EBITDA | $ | 14,606 | $ | 13,508 | $ | 12,364 | $ | 11,819 | $ | 10,334 | ||||||||||
Adjusted EBITDA | $ | 16,385 | $ | 14,607 | $ | 14,066 | $ | 12,927 | $ | 12,585 | ||||||||||
Dividend declared per common share | $ | 0.135 | $ | 0.135 | $ | 0.12 | $ | 0.12 | $ | 0.12 | ||||||||||
Portfolio Statistics: | ||||||||||||||||||||
Portfolio SF-consolidated | 11,955,455 | 11,078,912 | 10,649,768 | 10,253,580 | 9,829,020 | |||||||||||||||
Ending occupancy-consolidated portfolio | 89.2 | % | 88.8 | % | 88.4 | % | 89.5 | % | 90.7 | % | ||||||||||
Pro‐forma occupancy including uncommenced leases | 89.3 | % | 90.5 | % | 90.0 | % | 90.8 | % | 90.7 | % | ||||||||||
Leasing spreads-cash | 6.4 | % | 5.4 | % | 7.0 | % | 4.5 | % | 1.9 | % | (2) | |||||||||
Leasing spreads-GAAP | 12.9 | % | 16.3 | % | 15.4 | % | 11.6 | % | 11.8 | % | (2) | |||||||||
Same Property Performance: | ||||||||||||||||||||
Total rental revenue growth | 2.8 | % | 5.0 | % | 5.5 | % | 4.2 | % | 8.8 | % | ||||||||||
Total property expense growth | -5.4 | % | -3.2 | % | 3.8 | % | -3.4 | % | 4.1 | % | ||||||||||
NOI growth | 4.8 | % | 8.4 | % | 6.2 | % | 7.4 | % | 10.7 | % | ||||||||||
Cash NOI growth | 7.5 | % | 7.1 | % | 8.0 | % | 7.3 | % | 9.7 | % | ||||||||||
Same Property Portfolio ending occupancy | 94.4 | % | 93.7 | % | 92.6 | % | 92.4 | % | 92.1 | % | ||||||||||
Stabilized Same Property Portfolio ending occupancy | 95.6 | % | 94.8 | % | 94.0 | % | 94.9 | % | 93.7 | % | ||||||||||
Same Property Portfolio occupancy growth (ppt) | 1.6 | % | 2.4 | % | 2.3 | % | 2.1 | % | 2.3 | % | ||||||||||
Capitalization: | ||||||||||||||||||||
Common stock price at quarter end | $ | 16.36 | $ | 13.79 | $ | 14.58 | $ | 15.81 | $ | 15.71 | ||||||||||
Common shares issued and outstanding | 55,265,243 | 55,198,780 | 55,051,832 | 54,909,083 | 43,382,425 | |||||||||||||||
Total shares and units issued and outstanding at period end (3) | 57,291,885 | 57,265,484 | 57,229,405 | 57,205,769 | 45,705,769 | |||||||||||||||
Weighted average shares outstanding ‐ basic and diluted | 55,244,664 | 55,145,963 | 54,963,093 | 50,683,528 | 43,234,602 | |||||||||||||||
Total equity market capitalization | $ | 937,295 | $ | 789,691 | $ | 834,405 | $ | 904,423 | $ | 718,038 | ||||||||||
Total consolidated debt | $ | 418,698 | $ | 335,904 | $ | 296,715 | $ | 269,879 | $ | 357,076 | ||||||||||
Total combined market capitalization (debt and equity) | $ | 1,350,792 | $ | 1,120,512 | $ | 1,121,132 | $ | 1,126,761 | $ | 1,066,508 | ||||||||||
Ratios: | ||||||||||||||||||||
Net debt (pro‐rata) to total combined market capitalization | 30.6 | % | 29.5 | % | 25.6 | % | 19.7 | % | 32.7 | % | ||||||||||
Net debt (pro‐rata) to adjusted EBITDA (quarterly results annualized) | 6.3x | 5.7x | 5.1x | 4.3x | 6.9x |
(3) | Includes the following number of OP Units held by noncontrolling interests: 2,026,642 (Dec 31, 2015), 2,066,704 (Sep 30, 2015), 2,177,573 (Jun 30, 2015), 2,296,686 (Mar 31, 2015) and 2,323,344 (Dec 31, 2014). Excludes the following number of shares of unvested restricted stock: 333,441 (Dec 31, 2015), 389,123 (Sep 30, 2015), 407,463 (Jun 30, 2015), 420,280 (Mar 31, 2015) and 320,017 (Dec 31, 2014). Excludes 166,669 unvested LTIP Units and 315,998 unvested performance units which were granted in Q4-15. |
Fourth Quarter 2015 | Page 4 | |
Supplemental Financial Reporting Package |
Consolidated Balance Sheets | ||
(unaudited and in thousands) |
Rexford Industrial Realty, Inc. | |||||||||||||||||||
12/31/15 | 9/30/15 | 6/30/2015 | 3/31/2015 | 12/31/2014 | |||||||||||||||
Assets | |||||||||||||||||||
Land | $ | 492,704 | $ | 445,454 | $ | 420,349 | $ | 392,594 | $ | 368,033 | |||||||||
Buildings and improvements | 650,075 | 620,341 | 586,178 | 557,382 | 530,191 | ||||||||||||||
Tenant improvements | 28,977 | 26,539 | 25,008 | 22,417 | 21,404 | ||||||||||||||
Furniture, fixtures, and equipment | 188 | 188 | 188 | 188 | 188 | ||||||||||||||
Construction in progress | 16,822 | 14,265 | 13,181 | 13,306 | 10,646 | ||||||||||||||
Total real estate held for investment | 1,188,766 | 1,106,787 | 1,044,904 | 985,887 | 930,462 | ||||||||||||||
Accumulated depreciation | (103,623 | ) | (96,403 | ) | (89,539 | ) | (83,140 | ) | (76,884 | ) | |||||||||
Investments in real estate, net | 1,085,143 | 1,010,384 | 955,365 | 902,747 | 853,578 | ||||||||||||||
Cash and cash equivalents | 5,201 | 5,083 | 9,988 | 47,541 | 8,606 | ||||||||||||||
Notes receivable | — | — | 13,137 | 13,135 | 13,137 | ||||||||||||||
Rents and other receivables, net | 3,040 | 2,221 | 2,210 | 1,892 | 1,812 | ||||||||||||||
Deferred rent receivable | 7,827 | 7,009 | 6,067 | 5,520 | 5,165 | ||||||||||||||
Deferred leasing costs, net | 5,331 | 5,044 | 4,526 | 3,744 | 3,608 | ||||||||||||||
Deferred loan costs, net | 1,445 | 1,595 | 1,745 | 1,895 | 2,045 | ||||||||||||||
Acquired lease intangible assets, net(1) | 30,383 | 27,838 | 28,580 | 26,504 | 28,136 | ||||||||||||||
Indefinite‐lived intangible | 5,271 | 5,271 | 5,271 | 5,271 | 5,271 | ||||||||||||||
Other assets | 5,523 | 5,491 | 5,221 | 5,534 | 4,699 | ||||||||||||||
Acquisition related deposits | — | 1,250 | 1,400 | 250 | 2,110 | ||||||||||||||
Investment in unconsolidated real estate entities | 4,087 | 4,056 | 4,018 | 4,013 | 4,018 | ||||||||||||||
Total Assets | $ | 1,153,251 | $ | 1,075,242 | $ | 1,037,528 | $ | 1,018,046 | $ | 932,185 | |||||||||
Liabilities | |||||||||||||||||||
Notes payable | $ | 418,154 | $ | 335,058 | $ | 296,333 | $ | 269,541 | $ | 356,362 | |||||||||
Interest rate swap liability | 3,144 | 4,716 | 2,960 | 3,279 | 1,402 | ||||||||||||||
Accounts payable and accrued expenses | 12,631 | 13,886 | 9,257 | 11,566 | 10,053 | ||||||||||||||
Dividends payable | 7,806 | 7,504 | 6,655 | 6,639 | 5,244 | ||||||||||||||
Acquired lease intangible liabilities, net(2) | 3,387 | 2,700 | 2,579 | 2,903 | 3,016 | ||||||||||||||
Tenant security deposits | 11,539 | 10,523 | 9,711 | 9,112 | 8,768 | ||||||||||||||
Prepaid rents | 2,846 | 1,935 | 2,517 | 1,144 | 1,463 | ||||||||||||||
Total Liabilities | 459,507 | 376,322 | 330,012 | 304,184 | 386,308 | ||||||||||||||
Equity | |||||||||||||||||||
Common stock | 553 | 552 | 550 | 549 | 434 | ||||||||||||||
Additional paid in capital | 722,722 | 722,102 | 720,583 | 719,199 | 542,318 | ||||||||||||||
Cumulative distributions in excess of earnings | (48,103 | ) | (41,613 | ) | (34,702 | ) | (28,235 | ) | (21,673 | ) | |||||||||
Accumulated other comprehensive loss | (3,033 | ) | (4,546 | ) | (2,847 | ) | (3,147 | ) | (1,331 | ) | |||||||||
Total stockholders' equity | 672,139 | 676,495 | 683,584 | 688,366 | 519,748 | ||||||||||||||
Noncontrolling interests | 21,605 | 22,425 | 23,932 | 25,496 | 26,129 | ||||||||||||||
Total Equity | 693,744 | 698,920 | 707,516 | 713,862 | 545,877 | ||||||||||||||
Total Liabilities and Equity | $ | 1,153,251 | $ | 1,075,242 | $ | 1,037,528 | $ | 1,018,046 | $ | 932,185 |
(1) | Includes net above-market tenant lease intangibles of $6,225 (Dec. 31, 2015), $5,621 (Sept. 30, 2015), $5,725 (June 30, 2015), $3,312 (March 31, 2015) and $3,644 (Dec. 31 2014). |
(2) | Includes net below-market tenant lease intangibles of $3,174 (Dec. 31, 2015), $2,479 (Sept. 30, 2015), $2,350 (June 30, 2015), $2,666 (March 31, 2015) and $2,771 (Dec. 31 2014). |
Fourth Quarter 2015 | Page 5 | |
Supplemental Financial Reporting Package |
Consolidated Statements of Operations | ||
Quarterly Results | (unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Revenues | |||||||||||||||||||
Rental income | $ | 22,665 | $ | 20,617 | $ | 19,275 | $ | 18,557 | $ | 16,719 | |||||||||
Tenant reimbursements | 3,074 | 2,377 | 2,844 | 2,184 | 2,417 | ||||||||||||||
Other income | 320 | 341 | 162 | 190 | 234 | ||||||||||||||
Total rental revenues | 26,059 | 23,335 | 22,281 | 20,931 | 19,370 | ||||||||||||||
Management, leasing, and development services | 105 | 186 | 161 | 132 | 206 | ||||||||||||||
Interest income | — | 153 | 280 | 277 | 282 | ||||||||||||||
Total Revenues | 26,164 | 23,674 | 22,722 | 21,340 | 19,858 | ||||||||||||||
Operating Expenses | |||||||||||||||||||
Property expenses | 7,118 | 6,237 | 5,874 | 5,771 | 5,477 | ||||||||||||||
General and administrative | 3,952 | 3,778 | 3,740 | 3,546 | 3,486 | ||||||||||||||
Depreciation and amortization | 10,821 | 10,642 | 10,490 | 9,884 | 8,443 | ||||||||||||||
Total Operating Expenses | 21,891 | 20,657 | 20,104 | 19,201 | 17,406 | ||||||||||||||
Other Expense | |||||||||||||||||||
Acquisition expenses | 528 | 528 | 847 | 233 | 627 | ||||||||||||||
Interest expense | 2,724 | 2,245 | 1,658 | 1,826 | 1,655 | ||||||||||||||
Total Other Expense | 3,252 | 2,773 | 2,505 | 2,059 | 2,282 | ||||||||||||||
Total Expenses | 25,143 | 23,430 | 22,609 | 21,260 | 19,688 | ||||||||||||||
Equity in income (loss) from unconsolidated real estate entities | 35 | 45 | 12 | 1 | (25 | ) | |||||||||||||
Gain from early repayment of note receivable | — | 581 | — | — | — | ||||||||||||||
(Loss) gain on extinguishment of debt | — | (253 | ) | 71 | — | — | |||||||||||||
Net Income | 1,056 | 617 | 196 | 81 | 145 | ||||||||||||||
Less: net income attributable to noncontrolling interest | (40 | ) | (24 | ) | (8 | ) | (4 | ) | — | ||||||||||
Net income attributable to Rexford Industrial Realty, Inc. | 1,016 | 593 | 188 | 77 | 145 | ||||||||||||||
Less: earnings allocated to participating securities | (71 | ) | (53 | ) | (49 | ) | (50 | ) | (38 | ) | |||||||||
Net income attributable to common stockholders | $ | 945 | $ | 540 | $ | 139 | $ | 27 | $ | 107 | |||||||||
Earnings per Common Share ‐ Basic and Diluted | |||||||||||||||||||
Net income attributable to common stockholders | $ | 0.02 | $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||
Weighted average shares outstanding ‐ basic and diluted | 55,244,664 | 55,145,963 | 54,963,093 | 50,683,528 | 43,234,602 |
Fourth Quarter 2015 | Page 6 | |
Supplemental Financial Reporting Package |
Consolidated Statements of Operations | ||
Quarterly Results | (unaudited and in thousands) |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Rental Revenues | |||||||||||||||
Rental income | $ | 22,665 | $ | 16,719 | $ | 81,114 | $ | 56,636 | |||||||
Tenant reimbursements | 3,074 | 2,417 | 10,479 | 7,661 | |||||||||||
Other income | 320 | 234 | 1,013 | 307 | |||||||||||
Total Rental Revenues | 26,059 | 19,370 | 92,606 | 64,604 | |||||||||||
Management, leasing, and development services | 105 | 206 | 584 | 860 | |||||||||||
Interest income | — | 282 | 710 | 1,117 | |||||||||||
Total Revenues | 26,164 | 19,858 | 93,900 | 66,581 | |||||||||||
Operating Expenses | |||||||||||||||
Property expenses | 7,118 | 5,477 | 25,000 | 18,382 | |||||||||||
General and administrative | 3,952 | 3,486 | 15,016 | 12,144 | |||||||||||
Depreciation and amortization | 10,821 | 8,443 | 41,837 | 28,608 | |||||||||||
Total Operating Expenses | 21,891 | 17,406 | 81,853 | 59,134 | |||||||||||
Other Expense | |||||||||||||||
Acquisition expenses | 528 | 627 | 2,136 | 2,038 | |||||||||||
Interest expense | 2,724 | 1,655 | 8,453 | 6,400 | |||||||||||
Total Other Expense | 3,252 | 2,282 | 10,589 | 8,438 | |||||||||||
Total Expenses | 25,143 | 19,688 | 92,442 | 67,572 | |||||||||||
Equity in income (loss) from unconsolidated real estate entities | 35 | (25 | ) | 93 | (29 | ) | |||||||||
Gain from early repayment of note receivable | — | — | 581 | — | |||||||||||
Loss on extinguishment of debt | — | — | (182 | ) | — | ||||||||||
Loss on sale of real estate | — | — | — | (150 | ) | ||||||||||
Net Income (Loss) from Continuing Operations | 1,056 | 145 | 1,950 | (1,170 | ) | ||||||||||
Discontinued Operations | |||||||||||||||
Income from discontinued operations before gain on sale of real estate | — | — | — | 21 | |||||||||||
Gain on sale of real estate | — | — | — | 2,125 | |||||||||||
Income from Discontinued Operations | — | — | — | 2,146 | |||||||||||
Net Income | 1,056 | 145 | 1,950 | 976 | |||||||||||
Less: net income attributable to noncontrolling interest | (40 | ) | — | (76 | ) | (80 | ) | ||||||||
Net income attributable to Rexford Industrial Realty, Inc. | 1,016 | 145 | 1,874 | 896 | |||||||||||
Less: earnings allocated to participating securities | (71 | ) | (38 | ) | (223 | ) | (102 | ) | |||||||
Net income attributable to common stockholders | $ | 945 | $ | 107 | $ | 1,651 | $ | 794 | |||||||
Fourth Quarter 2015 | Page 7 | |
Supplemental Financial Reporting Package |
Non-GAAP FFO (1) | ||
(unaudited and in thousands, except share and per share data) |
Rexford Industrial Realty, Inc. | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Funds From Operations (FFO) | |||||||||||||||||||
Net Income | $ | 1,056 | $ | 617 | $ | 196 | $ | 81 | $ | 145 | |||||||||
Add: | |||||||||||||||||||
Depreciation and amortization, including amounts in discontinued operations | 10,821 | 10,642 | 10,490 | 9,884 | 8,443 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | 5 | 4 | 20 | 28 | 66 | ||||||||||||||
Deduct: | |||||||||||||||||||
Gain on sale of real estate from unconsolidated joint ventures | — | — | — | — | 3 | ||||||||||||||
FFO (2) | 11,882 | 11,263 | 10,706 | 9,993 | 8,651 | ||||||||||||||
Company share of FFO (3)(4) | $ | 11,365 | $ | 10,780 | $ | 10,220 | $ | 9,513 | $ | 8,145 | |||||||||
FFO per share‐basic and diluted | $ | 0.21 | $ | 0.20 | $ | 0.19 | $ | 0.19 | $ | 0.19 | |||||||||
FFO | 11,882 | 11,263 | 10,706 | 9,993 | 8,651 | ||||||||||||||
Add: | |||||||||||||||||||
Non‐recurring legal fees (reimbursements)(5) | — | (88 | ) | 64 | 369 | 205 | |||||||||||||
Acquisition expenses | 528 | 528 | 847 | 233 | 627 | ||||||||||||||
Recurring FFO (2) | $ | 12,410 | $ | 11,703 | $ | 11,617 | $ | 10,595 | $ | 9,483 | |||||||||
Company share of Recurring FFO (3) | $ | 11,870 | $ | 11,201 | $ | 11,089 | $ | 10,085 | $ | 8,932 | |||||||||
Recurring FFO per share‐basic and diluted | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.21 | |||||||||
Weighted‐average shares outstanding‐basic and diluted | 55,244,664 | 55,145,963 | 54,963,093 | 50,683,528 | 43,234,602 | ||||||||||||||
Weighted-average diluted shares and units | 57,289,069 | 57,257,186 | 57,220,536 | 52,989,102 | 45,705,769 | ||||||||||||||
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(2) | FFO and Recurring FFO for the three months ended September 30, 2015, includes the following: (i) $581 gain from the early repayment of the Calle Perfecto note receivable and (ii) $253 loss on extinguishment of debt. FFO and Recurring FFO for the three months ended June 30, 2015, includes a $71 gain on extinguishment of debt. |
(3) | Company share of FFO and Recurring FFO is based on the weighted average interest in our operating partnership of 96.4%, 96.3%, 96.1%, 95.6% and 94.6% for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. |
(4) | Company share of FFO excludes FFO allocated to participating securities of $99, $76, $76, $71 and $38 for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units. |
(5) | Non-recurring legal fees (reimbursements) relate to litigation. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K, as amended, and Item 1. Legal Proceedings in our subsequent quarterly reports on Form 10-Q. |
Fourth Quarter 2015 | Page 8 | |
Supplemental Financial Reporting Package |
Non-GAAP AFFO (1) | ||
(unaudited and in thousands) | ||
AFFO |
Rexford Industrial Realty, Inc. | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015(2) | December 31, 2014(2) | |||||||||||||||
Adjusted Funds From Operations (AFFO) | |||||||||||||||||||
Funds From Operations | $ | 11,882 | $ | 11,263 | $ | 10,706 | $ | 9,993 | $ | 8,651 | |||||||||
Add: | |||||||||||||||||||
Amortization of deferred financing costs | 194 | 200 | 209 | 209 | 206 | ||||||||||||||
Fair value lease expense | 48 | 69 | 46 | 39 | 115 | ||||||||||||||
Non‐cash stock compensation | 494 | 443 | 467 | 348 | 250 | ||||||||||||||
Straight line corporate office rent expense adjustment | (1 | ) | 21 | 37 | 24 | — | |||||||||||||
Loss (gain) on extinguishment of debt | — | 253 | (71 | ) | — | — | |||||||||||||
Deduct: | |||||||||||||||||||
Straight line rental revenue adjustment(3) | 1,409 | 1,039 | 612 | 365 | 595 | ||||||||||||||
Capitalized payments (4) | 651 | 548 | 497 | 344 | 302 | ||||||||||||||
Note receivable discount amortization | — | 38 | 71 | 69 | 68 | ||||||||||||||
Note payable premium amortization | 33 | 33 | 33 | 92 | 82 | ||||||||||||||
Gain from early repayment of note receivable | — | 581 | — | — | — | ||||||||||||||
Recurring capital expenditures(5) | 1,346 | 921 | 871 | 392 | 908 | ||||||||||||||
2nd generation tenant improvements and leasing commissions(6) | 762 | 701 | 893 | 706 | 918 | ||||||||||||||
Unconsolidated joint venture AFFO adjustments | 4 | 5 | (4 | ) | (9 | ) | 3 | ||||||||||||
AFFO | $ | 8,412 | $ | 8,383 | $ | 8,421 | $ | 8,654 | $ | 6,346 |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(2) | For comparability, prior period amounts have been reclassified to conform to current period presentation. |
(3) | For the three months ended December 31, 2015, the straight line rental revenue adjustment includes $727 of concessions and $554 of free rent under a license agreement at one of our properties. The straight line rental revenue adjustment includes concessions of $870, $485, $358, and $494 for the three months ended September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. |
(4) | Includes capitalized interest, and leasing and construction development compensation. |
(5) | Excludes nonrecurring capital expenditures of $4,018, $4,222, $3,312, $2,920, and $4,118 for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. |
(6) | Excludes 1st generation tenant improvements and leasing commissions of $418, $624, $996, $236 and $640 for the three months ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. |
Fourth Quarter 2015 | Page 9 | |
Supplemental Financial Reporting Package |
Statement of Operations Reconciliations (1) | ||
(unaudited and in thousands) |
Rexford Industrial Realty, Inc. | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Net Operating Income (NOI) | |||||||||||||||||||
Rental income | $ | 22,665 | $ | 20,617 | $ | 19,275 | $ | 18,557 | $ | 16,719 | |||||||||
Tenant reimbursements | 3,074 | 2,377 | 2,844 | 2,184 | 2,417 | ||||||||||||||
Other income | 320 | 341 | 162 | 190 | 234 | ||||||||||||||
Total rental revenues | 26,059 | 23,335 | 22,281 | 20,931 | 19,370 | ||||||||||||||
Property expenses | 7,118 | 6,237 | 5,874 | 5,771 | 5,477 | ||||||||||||||
NOI | $ | 18,941 | $ | 17,098 | $ | 16,407 | $ | 15,160 | $ | 13,893 | |||||||||
Fair value lease revenue | 48 | 69 | 46 | 39 | 115 | ||||||||||||||
Straight line rental revenue adjustment | (1,409 | ) | (1,039 | ) | (612 | ) | (365 | ) | (595 | ) | |||||||||
Cash NOI | $ | 17,580 | $ | 16,128 | $ | 15,841 | $ | 14,834 | $ | 13,413 | |||||||||
Net Income | $ | 1,056 | $ | 617 | $ | 196 | $ | 81 | $ | 145 | |||||||||
Add: | |||||||||||||||||||
General and administrative | 3,952 | 3,778 | 3,740 | 3,546 | 3,486 | ||||||||||||||
Depreciation and amortization | 10,821 | 10,642 | 10,490 | 9,884 | 8,443 | ||||||||||||||
Acquisition expenses | 528 | 528 | 847 | 233 | 627 | ||||||||||||||
Interest expense | 2,724 | 2,245 | 1,658 | 1,826 | 1,655 | ||||||||||||||
Loss (gain) on extinguishment of debt | — | 253 | (71 | ) | — | — | |||||||||||||
Subtract: | |||||||||||||||||||
Management, leasing, and development services | 105 | 186 | 161 | 132 | 206 | ||||||||||||||
Interest income | — | 153 | 280 | 277 | 282 | ||||||||||||||
Equity in income (loss) from unconsolidated real estate entities | 35 | 45 | 12 | 1 | (25 | ) | |||||||||||||
Gain from early repayment of note receivable | — | 581 | — | — | — | ||||||||||||||
NOI | $ | 18,941 | $ | 17,098 | $ | 16,407 | $ | 15,160 | $ | 13,893 | |||||||||
Fair value lease revenue | 48 | 69 | 46 | 39 | 115 | ||||||||||||||
Straight line rental revenue adjustment | (1,409 | ) | (1,039 | ) | (612 | ) | (365 | ) | (595 | ) | |||||||||
Cash NOI | $ | 17,580 | $ | 16,128 | $ | 15,841 | $ | 14,834 | $ | 13,413 |
(1) | For a definition and discussion of non‐GAAP financial measures, see the definitions section beginning on page 28 of this report. |
Fourth Quarter 2015 | Page 10 | |
Supplemental Financial Reporting Package |
Statement of Operations Reconciliations (1) | ||
(unaudited and in thousands) |
Rexford Industrial Realty, Inc. | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Net income | 1,056 | 617 | 196 | 81 | 145 | ||||||||||||||
Interest expense | 2,724 | 2,245 | 1,658 | 1,826 | 1,655 | ||||||||||||||
Proportionate share of interest expense from | |||||||||||||||||||
unconsolidated joint ventures | — | — | — | — | 25 | ||||||||||||||
Depreciation and amortization | 10,821 | 10,642 | 10,490 | 9,884 | 8,443 | ||||||||||||||
Proportionate share of real estate related depreciation and | |||||||||||||||||||
amortization from unconsolidated joint ventures | 5 | 4 | 20 | 28 | 66 | ||||||||||||||
EBITDA | $ | 14,606 | $ | 13,508 | $ | 12,364 | $ | 11,819 | $ | 10,334 | |||||||||
Stock‐based compensation amortization | 494 | 443 | 467 | 348 | 250 | ||||||||||||||
Loss (gain) on extinguishment of debt | — | 253 | (71 | ) | — | — | |||||||||||||
Gain from early repayment of note receivable | — | (581 | ) | — | — | — | |||||||||||||
Non‐recurring legal fees (reimbursements)(2) | — | (88 | ) | 64 | 369 | 205 | |||||||||||||
Acquisition expenses | 528 | 528 | 847 | 233 | 627 | ||||||||||||||
Pro forma effect of acquisitions(3) | 757 | 544 | 395 | 158 | 1,169 | ||||||||||||||
Adjusted EBITDA | $ | 16,385 | $ | 14,607 | $ | 14,066 | $ | 12,927 | $ | 12,585 |
(1) | For a definition and discussion of non‐GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(2) | Non‐recurring legal fees (reimbursements) relate to Litigation. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10‐K, as amended, and Item 1. Legal Proceedings in our subsequent quarterly reports on Form 10‐Q. |
(3) | Represents the estimated impact of Q4'15 acquisition as if they had been acquired October 1, 2015, Q3'15 acquisitions as if they had been acquired July 1, 2015, Q2'15 acquisitions as if they had been acquired April 1, 2015, Q1'15 acquisitions as if they had been acquired January 1, 2015 and Q4'14 acquisitions as if they had been acquired October 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. |
Fourth Quarter 2015 | Page 11 | |
Supplemental Financial Reporting Package |
Same Property Portfolio Performance (1) | ||
Statement of Operations and NOI Reconciliation | (unaudited and in thousands) |
Same Property Portfolio Statement of Operations: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||
Rental Revenues | |||||||||||||||||||||||||||
Rental income | $ | 12,533 | $ | 12,080 | $ | 453 | 3.8% | $ | 48,545 | $ | 46,423 | $ | 2,122 | 4.6% | |||||||||||||
Tenant reimbursements | 1,593 | 1,671 | (78 | ) | (4.7)% | 5,976 | 6,106 | (130 | ) | (2.1)% | |||||||||||||||||
Other income | 228 | 213 | 15 | 7.0% | 600 | 282 | 318 | 112.8% | |||||||||||||||||||
Total Rental Revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,811 | 2,310 | 4.4% | |||||||||||||||||||
Interest income | — | — | — | 0.0% | — | 1 | (1 | ) | (100.0)% | ||||||||||||||||||
Total Revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,812 | 2,309 | 4.4% | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||
Property expenses | 3,876 | 3,964 | (88 | ) | (2.2)% | 14,950 | 15,162 | (212 | ) | (1.4)% | |||||||||||||||||
Depreciation and amortization | 4,469 | 4,855 | (386 | ) | (8.0)% | 18,343 | 21,103 | (2,760 | ) | (13.1)% | |||||||||||||||||
Total Operating Expenses | 8,345 | 8,819 | (474 | ) | (5.4)% | 33,293 | 36,265 | (2,972 | ) | (8.2)% | |||||||||||||||||
Other Expense | |||||||||||||||||||||||||||
Interest expense | — | 185 | (185 | ) | (100.0)% | 549 | 1,062 | (513 | ) | (48.3)% | |||||||||||||||||
Total Other Expense | — | 185 | (185 | ) | (100.0)% | 549 | 1,062 | (513 | ) | (48.3)% | |||||||||||||||||
Total Expenses | 8,345 | 9,004 | (659 | ) | (7.3)% | 33,842 | 37,327 | (3,485 | ) | (9.3)% | |||||||||||||||||
Net Income | $ | 6,009 | $ | 4,960 | $ | 1,049 | 21.1% | $ | 21,279 | $ | 15,485 | $ | 5,794 | 37.4% | |||||||||||||
Same Property Portfolio NOI Reconciliation: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
NOI | 2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | |||||||||||||||||||
Net Income | $ | 6,009 | $ | 4,960 | $ | 21,279 | $ | 15,485 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||||
Interest expense | — | 185 | 549 | 1,062 | |||||||||||||||||||||||
Depreciation and amortization | 4,469 | 4,855 | 18,343 | 21,103 | |||||||||||||||||||||||
Deduct: | |||||||||||||||||||||||||||
Interest income | — | — | — | 1 | |||||||||||||||||||||||
NOI | $ | 10,478 | $ | 10,000 | $ | 478 | 4.8% | $ | 40,171 | $ | 37,649 | $ | 2,522 | 6.7% | |||||||||||||
Straight-line rents | (149 | ) | (438 | ) | (569 | ) | (1,015 | ) | |||||||||||||||||||
Amort. above/below market leases | 36 | 80 | 191 | 370 | |||||||||||||||||||||||
Cash NOI | $ | 10,365 | $ | 9,642 | $ | 723 | 7.5% | $ | 39,793 | $ | 37,004 | $ | 2,789 | 7.5% |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 28 of this report. |
Fourth Quarter 2015 | Page 12 | |
Supplemental Financial Reporting Package |
Same Property Portfolio Performance (1) | ||
NOI Reconciliation, Portfolio Summary and Occupancy | (unaudited and dollars in thousands) |
Same Property Portfolio NOI Reconciliation Continued: | |||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||
Rental income | $ | 12,533 | $ | 12,080 | $ | 453 | 3.8% | $ | 48,545 | $ | 46,423 | $ | 2,122 | 4.6% | |||||||||||||
Tenant reimbursements | 1,593 | 1,671 | (78 | ) | (4.7)% | 5,976 | 6,106 | (130 | ) | (2.1)% | |||||||||||||||||
Other income | 228 | 213 | 15 | 7.0% | 600 | 282 | 318 | 112.8% | |||||||||||||||||||
Total rental revenues | 14,354 | 13,964 | 390 | 2.8% | 55,121 | 52,811 | 2,310 | 4.4% | |||||||||||||||||||
Property expenses | 3,876 | 3,964 | (88 | ) | (2.2)% | 14,950 | 15,162 | (212 | ) | (1.4)% | |||||||||||||||||
NOI | $ | 10,478 | $ | 10,000 | $ | 478 | 4.8% | $ | 40,171 | $ | 37,649 | $ | 2,522 | 6.7% | |||||||||||||
Straight-line rents | (149 | ) | (438 | ) | 289 | (66.0)% | (569 | ) | (1,015 | ) | 446 | (43.9)% | |||||||||||||||
Amort. above/below market leases | 36 | 80 | (44) | (55.0)% | 191 | 370 | (179 | ) | (48.4)% | ||||||||||||||||||
Cash NOI | $ | 10,365 | 9,642 | $ | 723 | 7.5% | $ | 39,793 | 37,004 | $ | 2,789 | 7.5% | |||||||||||||||
Same Property Portfolio Summary: |
Same Property Portfolio | Stabilized Same Property Portfolio(2) | |||
Number of properties | 62 | 62 | ||
Square Feet | 6,083,359 | 6,011,359 |
Same Property Portfolio Occupancy: | |||||||||||
December 31, 2015 | December 31, 2014 | Change (ppt) | |||||||||
Same Property Portfolio | Stabilized Same Property Portfolio(2) | Same Property Portfolio | Stabilized Same Property Portfolio(2) | Same Property Portfolio | Stabilized Same Property Portfolio(2) | ||||||
Occupancy: | |||||||||||
Los Angeles County | 94.8% | 96.9% | 96.0% | 95.9% | (1.2)% | 1.0% | |||||
Orange County | 96.1% | 96.1% | 96.2% | 96.2% | (0.1)% | (0.1)% | |||||
San Bernardino County | 96.2% | 96.2% | 87.6% | 87.6% | 8.6% | 8.6% | |||||
Ventura County | 95.5% | 95.5% | 90.5% | 90.5% | 5.0% | 5.0% | |||||
San Diego County | 89.1% | 89.1% | 81.7% | 81.7% | 7.4% | 7.4% | |||||
Total/Weighted Average | 94.4% | 95.6% | 92.8% | 92.7% | 1.6% | 2.9% |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(2) | Reflects the square footage and occupancy of our Same Property Portfolio adjusted for space aggregating 72,000 rentable square feet that was classified as repositioning as of December 31, 2015. For additional details, refer to page 24 of this report. |
Fourth Quarter 2015 | Page 13 | |
Supplemental Financial Reporting Package |
Joint Venture Financial Summary | ||
Balance Sheet | (unaudited and in thousands) |
Mission Oaks (1) | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Assets: | |||||||||||||||||||
Investments in real estate, net | $ | 21,558 | $ | 21,153 | $ | 20,690 | $ | 20,635 | $ | 20,268 | |||||||||
Cash and cash equivalents | 2,474 | 2,631 | 2,891 | 2,573 | 2,331 | ||||||||||||||
Rents and other receivables, net | 34 | 5 | 183 | 220 | 231 | ||||||||||||||
Deferred rent receivable | 61 | 39 | 2 | — | — | ||||||||||||||
Deferred leasing costs and acquisition related intangible assets, net | 140 | 152 | 74 | 164 | 290 | ||||||||||||||
Acquired above-market leases, net | — | — | — | 44 | 110 | ||||||||||||||
Other assets | 13 | 16 | 22 | 28 | 19 | ||||||||||||||
Total Assets | $ | 24,280 | $ | 23,996 | $ | 23,862 | $ | 23,664 | $ | 23,249 | |||||||||
Liabilities: | |||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 646 | $ | 686 | $ | 836 | $ | 930 | $ | 678 | |||||||||
Deferred rent payable | — | — | — | 4 | 11 | ||||||||||||||
Tenant security deposits | 436 | 429 | 429 | 292 | 292 | ||||||||||||||
Prepaid rents | 168 | 130 | 177 | 129 | — | ||||||||||||||
Total Liabilities | 1,250 | 1,245 | 1,442 | 1,355 | 981 | ||||||||||||||
Equity: | |||||||||||||||||||
Equity | 8,202 | 8,202 | 8,202 | 8,202 | 8,202 | ||||||||||||||
Accumulated deficit and distributions | 14,828 | 14,549 | 14,218 | 14,107 | 14,066 | ||||||||||||||
Total Equity | 23,030 | 22,751 | 22,420 | 22,309 | 22,268 | ||||||||||||||
Total Liabilities and Equity | $ | 24,280 | $ | 23,996 | $ | 23,862 | $ | 23,664 | $ | 23,249 | |||||||||
Rexford Industrial Realty, Inc. Ownership %: | 15% | 15% | 15% | 15% | 15% |
(1) | These financial statements represent amounts attributable to the entities and do not represent our 15% proportionate share. |
Fourth Quarter 2015 | Page 14 | |
Supplemental Financial Reporting Package |
Joint Venture Financial Summary(1) | ||
Statement of Operations | (unaudited and in thousands) | |
Statement of Operations: |
Mission Oaks (2) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Income Statement | |||||||||||||||||||
Rental revenues | $ | 526 | $ | 502 | $ | 373 | $ | 348 | $ | 807 | |||||||||
Tenant reimbursements | 106 | 191 | 312 | 315 | 355 | ||||||||||||||
Other operating revenues | (2 | ) | 2 | — | — | — | |||||||||||||
Total revenue | 630 | 695 | 685 | 663 | 1,162 | ||||||||||||||
Total operating expense | 288 | 334 | 423 | 425 | 555 | ||||||||||||||
NOI | 342 | 361 | 262 | 238 | 607 | ||||||||||||||
General and administrative | 36 | 3 | 13 | 12 | 11 | ||||||||||||||
Depreciation and amortization | 27 | 27 | 138 | 185 | 442 | ||||||||||||||
Interest expense | — | — | — | — | 165 | ||||||||||||||
Loss on Extinguishment of Debt | — | — | — | — | 70 | ||||||||||||||
Gain on sale of assets/investments | — | — | — | — | (13,389 | ) | |||||||||||||
Total expense (income) | 351 | 364 | 574 | 622 | (12,146 | ) | |||||||||||||
Net Income | $ | 279 | $ | 331 | $ | 111 | $ | 41 | $ | 13,308 | |||||||||
EBITDA | |||||||||||||||||||
Net income | $ | 279 | $ | 331 | $ | 111 | $ | 41 | $ | 13,308 | |||||||||
Interest expense | — | — | — | — | 165 | ||||||||||||||
Depreciation and amortization | 27 | 27 | 138 | 185 | 442 | ||||||||||||||
EBITDA | $ | 306 | $ | 358 | $ | 249 | $ | 226 | $ | 13,915 | |||||||||
Rexford Industrial Realty, Inc. Ownership %: | 15% | 15% | 15% | 15% | 15% | ||||||||||||||
Reconciliation - Equity Income in Joint Venture: | |||||||||||||||||||
Net income | $ | 279 | $ | 331 | $ | 111 | $ | 41 | $ | 13,308 | |||||||||
Rexford Industrial Realty, Inc. Ownership %: | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | |||||||||
Company share | 42 | 50 | 17 | 6 | 1,996 | ||||||||||||||
Intercompany eliminations/basis adjustments | (7 | ) | (5 | ) | (5 | ) | (5 | ) | (2,021 | ) | |||||||||
Equity in net income (loss) from unconsolidated real estate entities | $ | 35 | $ | 45 | $ | 12 | $ | 1 | $ | (25 | ) |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(2) | These financial statements represent amounts attributable to the entities and do not represent our 15% proportionate share. |
Fourth Quarter 2015 | Page 15 | |
Supplemental Financial Reporting Package |
Capitalization Summary | ||
(unaudited and in thousands, except share and per share data) | ||
Capitalization as of December 31, 2015 |
Description | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
Common shares (1) | 55,265,243 | 55,198,780 | 55,051,832 | 54,909,083 | 43,382,425 | |||||||||||||||
Operating partnership units(2) | 2,026,642 | 2,066,704 | 2,177,573 | 2,296,686 | 2,323,344 | |||||||||||||||
Total shares and units at period end | 57,291,885 | 57,265,484 | 57,229,405 | 57,205,769 | 45,705,769 | |||||||||||||||
Share price at end of quarter | $ | 16.36 | $ | 13.79 | $ | 14.58 | $ | 15.81 | $ | 15.71 | ||||||||||
Total Equity Market Capitalization | $ | 937,295 | $ | 789,691 | $ | 834,405 | $ | 904,423 | $ | 718,038 | ||||||||||
Total Debt | $ | 418,698 | $ | 335,904 | $ | 296,715 | $ | 269,879 | $ | 357,076 | ||||||||||
Less: Cash and cash equivalents | (5,201 | ) | (5,083 | ) | (9,988 | ) | (47,541 | ) | (8,606 | ) | ||||||||||
Net Debt | $ | 413,497 | $ | 330,821 | $ | 286,727 | $ | 222,338 | $ | 348,470 | ||||||||||
Total Combined Market Capitalization (Debt and Equity) | $ | 1,350,792 | $ | 1,120,512 | $ | 1,121,132 | $ | 1,126,761 | $ | 1,066,508 | ||||||||||
Net debt to total combined market capitalization | 30.6 | % | 29.5 | % | 25.6 | % | 19.7 | % | 32.7 | % | ||||||||||
Net debt to adjusted EBITDA (quarterly results annualized)(3) | 6.3x | 5.7x | 5.1x | 4.3x | 6.9x | |||||||||||||||
Fourth Quarter 2015 | Page 16 | |
Supplemental Financial Reporting Package |
Debt Summary | ||
(unaudited and dollars in thousands) | ||
Debt Detail: | ||
As of December 31, 2015 |
Debt Description | Maturity Date | Stated Interest Rate | Effective Interest Rate(1) | Principal Balance | Maturity Date of Effective Swaps | ||||||
Secured Debt: | |||||||||||
$60M Term Loan | 8/1/2019(2) | LIBOR + 1.90% | 3.818% | 60,000 | 2/15/2019 | ||||||
Gilbert/La Palma | 3/1/2031 | 5.125% | 5.125% | 3,044 | -- | ||||||
12907 Imperial Highway | 4/1/2018 | 5.950% | 5.950% | 5,299 | -- | ||||||
1065 Walnut St | 2/1/2019(6) | 4.550% | 4.550% | 9,855 | -- | ||||||
Unsecured Debt: | |||||||||||
$100M Term Loan Facility | 6/11/2019 | LIBOR +1.25%(3) | 3.040% | 50,000 | 12/14/2018 | ||||||
$100M Term Loan Facility(4) | 6/11/2019 | LIBOR +1.25%(3) | 1.680% | 50,000 | -- | ||||||
$200M Revolving Credit Facility(5) | 6/11/2018(2) | LIBOR +1.30%(3) | 1.730% | 140,500 | -- | ||||||
$100M Senior Notes | 8/6/2025 | 4.290% | 4.290% | 100,000 | -- | ||||||
Total Consolidated: | 2.935% | 418,698 |
Debt Composition: | ||||||||||
Category | Avg. Term Remaining (yrs)(1) | Stated Interest Rate | Effective Interest Rate | Balance | % of Total | |||||
Fixed(2) | 6.3 | 3.95% | 3.95% | $228,198 | 55% | |||||
Variable(2) | 2.7 | LIBOR + 1.29% | 1.72% | $190,500 | 45% | |||||
Secured | 3.9 | 4.11% | $78,198 | 19% | ||||||
Unsecured | 4.8 | 2.67% | $340,500 | 81% |
Debt Maturity Schedule: | ||||||||||||||||||
Year | Secured | Unsecured Debt | Total | % Total | Interest Rate | |||||||||||||
2016-2017 | — | — | — | — | % | — | % | |||||||||||
2018 | 5,299 | 140,500 | 145,799 | 35 | % | 1.883 | % | |||||||||||
2019 | 69,855 | 100,000 | 169,855 | 41 | % | 3.002 | % | |||||||||||
Thereafter | 3,044 | 100,000 | 103,044 | 25 | % | 4.315 | % | |||||||||||
Total | $ | 78,198 | $ | 340,500 | $ | 418,698 | 100 | % | 2.935 | % |
Fourth Quarter 2015 | Page 17 | |
Supplemental Financial Reporting Package |
Debt Covenants | ||
(unaudited results) | ||
Unsecured Revolving Credit Facility and Term Loan Facility Covenants(1) |
Covenant | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||
Maximum Leverage Ratio | less than 60% | 36.3% | 30.2% | 28.1% | 26.6% | |||||
Maximum Secured Leverage Ratio | less than 45% | 5.9% | 6.2% | 15.1% | 16.7% | |||||
Maximum Secured Recourse Debt(2) | less than 15% | 0.0% | —% | —% | —% | |||||
Maximum Recourse Debt(2) | less than 15% | -- | -- | 1.0% | 1.1% | |||||
Minimum Tangible Net Worth | $582,432,000 | $753,641,000 | $755,982,000 | $756,231,000 | $762,145,000 | |||||
Minimum Fixed Charge Coverage Ratio | at least 1.50 to 1.00 | 4.72 to 1.00 | 5.26 to 1.00 | 8.47 to 1.00 | 7.60 to 1.00 | |||||
Unencumbered Leverage Ratio | less than 60% | 33.6% | 27.1% | 17.1% | 13.1% | |||||
Unencumbered Interest Coverage Ratio | at least 1.75 to 1.00 | 3.31 to 1.00 | 3.87 to 1.00 | 5.96 to 1.00 | 7.55 to 1.00 | |||||
(1) | Our actual performance for each covenant is calculated based on the definitions set forth in the loan agreement. |
(2) | On July 15, 2015, we amended our credit agreement. The amendment provides for, among other things, the replacement of the maximum recourse debt covenant with a maximum secured recourse debt covenant. |
Fourth Quarter 2015 | Page 18 | |
Supplemental Financial Reporting Package |
Portfolio Overview | ||
at 12/31/15 | (unaudited results) | |
Consolidated Portfolio: |
Rentable Square Feet | Occupancy | Annualized Base Rent | ||||||||||||||||||||||||||
Market | # Properties | Same Properties Portfolio | Non-Same Properties Portfolio | Total Portfolio | Same Properties Portfolio | Non-Same Properties Portfolio | Total Portfolio | Total Portfolio Excluding Repositioning(1) | Total (in thousands)(2) | per SF | ||||||||||||||||||
Greater San Fernando Valley | 23 | 1,283,251 | 1,329,723 | 2,612,974 | 87.3 | % | 84.7 | % | 86.0 | % | 94.0 | % | 21,274 | $9.47 | ||||||||||||||
San Gabriel Valley | 12 | 978,356 | 350,858 | 1,329,214 | 99.8 | % | 100.0 | % | 99.8 | % | 99.8 | % | 10,644 | $8.02 | ||||||||||||||
Central LA | 4 | 190,663 | 196,647 | 387,310 | 100.0 | % | 87.9 | % | 93.9 | % | 100.0 | % | 3,631 | $9.99 | ||||||||||||||
Mid-Counties | 10 | 522,430 | 302,740 | 825,170 | 100.0 | % | 79.1 | % | 92.3 | % | 100.0 | % | 5,615 | $7.37 | ||||||||||||||
South Bay | 13 | 331,076 | 658,281 | 989,357 | 98.2 | % | 89.5 | % | 92.5 | % | 97.4 | % | 8,093 | $8.85 | ||||||||||||||
Los Angeles County | 62 | 3,305,776 | 2,838,249 | 6,144,025 | 94.8 | % | 87.3 | % | 91.4 | % | 97.0 | % | 49,257 | $8.77 | ||||||||||||||
North Orange County | 6 | 459,754 | 184,262 | 644,016 | 96.5 | % | 100.0 | % | 97.5 | % | 97.5 | % | 5,769 | $9.19 | ||||||||||||||
West Orange County | 2 | — | 285,777 | 285,777 | 0.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 2,263 | $7.92 | ||||||||||||||
South Orange County | 1 | — | 46,178 | 46,178 | 0.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 371 | $8.04 | ||||||||||||||
OC Airport | 6 | 289,040 | 222,230 | 511,270 | 95.6 | % | 22.2 | % | 63.7 | % | 96.2 | % | 2,899 | $8.90 | ||||||||||||||
Orange County | 15 | 748,794 | 738,447 | 1,487,241 | 96.1 | % | 76.6 | % | 86.4 | % | 97.8 | % | 11,302 | $8.79 | ||||||||||||||
Inland Empire West | 11 | 495,431 | 675,452 | 1,170,883 | 95.5 | % | 97.6 | % | 96.7 | % | 96.7 | % | 8,204 | $7.24 | ||||||||||||||
Inland Empire East | 2 | 85,282 | — | 85,282 | 100.0 | % | 0.0 | % | 100.0 | % | 100.0 | % | 551 | $6.46 | ||||||||||||||
San Bernardino County | 13 | 580,713 | 675,452 | 1,256,165 | 96.2 | % | 97.6 | % | 97.0 | % | 97.0 | % | 8,755 | $7.19 | ||||||||||||||
Ventura | 11 | 649,128 | 495,143 | 1,144,271 | 95.5 | % | 95.1 | % | 95.3 | % | 95.3 | % | 9,011 | $8.26 | ||||||||||||||
Ventura County | 11 | 649,128 | 495,143 | 1,144,271 | 95.5 | % | 95.1 | % | 95.3 | % | 95.3 | % | 9,011 | $8.26 | ||||||||||||||
North County San Diego | 6 | 584,258 | — | 584,258 | 91.1 | % | 0.0 | % | 91.1 | % | 91.1 | % | 4,980 | $9.36 | ||||||||||||||
Central San Diego | 11 | 137,989 | 1,124,805 | 1,262,794 | 95.5 | % | 66.3 | % | 69.5 | % | 98.7 | % | 9,973 | $11.37 | ||||||||||||||
South County San Diego | 1 | 76,701 | — | 76,701 | 62.6 | % | 0.0 | % | 62.6 | % | 62.6 | % | 432 | $9.00 | ||||||||||||||
San Diego County | 18 | 798,948 | 1,124,805 | 1,923,753 | 89.1 | % | 66.3 | % | 75.8 | % | 94.0 | % | 15,386 | $10.56 | ||||||||||||||
CONSOLIDATED TOTAL / WTD AVG | 119 | 6,083,359 | 5,872,096 | 11,955,455 | 94.4 | % | 83.8 | % | 89.2 | % | 96.5 | % | 93,710 | $8.79 | ||||||||||||||
Unconsolidated Joint Ventures: | ||||||||||||||||||||||||||||
Ventura | 1 | — | 68,370 | 68,370 | 0.0 | % | 55.0 | % | 55.0 | % | 55.0 | % | 311 | $8.26 | ||||||||||||||
UNCONSOLIDATED TOTAL / WTD AVG | 1 | — | 68,370 | 68,370 | 0.0 | % | 55.0 | % | 55.0 | % | 55.0 | % | 311 | $8.26 | ||||||||||||||
Total Portfolio: | ||||||||||||||||||||||||||||
GRAND TOTAL / WTD AVG | 120 | 6,083,359 | 5,940,466 | 12,023,825 | 94.4 | % | 83.5 | % | 89.0 | % | 96.3 | % | 94,020 | $8.78 |
(1) | Excludes space at nine of our properties that were in various stages of repositioning (including current and future repositioning) or lease-up as of December 31, 2015. See page 24 for additional details on these properties. |
(2) | Calculated for each property as monthly contracted base rent per the terms of the lease(s) at such property, as of December 31, 2015, 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 2015 | Page 19 | |
Supplemental Financial Reporting Package |
Occupancy and Leasing Trends | ||
(unaudited results, data represents consolidated portfolio only) | ||
Occupancy by County: |
Dec 31, 2015(1) | Sep 30, 2015 | June 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||
Occupancy: | ||||||||||
Los Angeles County | 91.4% | 86.1% | 87.7% | 87.1% | 91.0% | |||||
Orange County | 86.4% | 85.1% | 84.4% | 92.6% | 92.1% | |||||
San Bernardino County | 97.0% | 97.2% | 96.7% | 96.3% | 92.1% | |||||
Ventura County | 95.3% | 94.7% | 90.8% | 91.8% | 91.4% | |||||
San Diego County | 75.8% | 91.7% | 87.5% | 89.0% | 86.3% | |||||
Total/Weighted Average | 89.2% | 88.8% | 88.4% | 89.5% | 90.7% | |||||
Consolidated Portfolio SF | 11,955,455 | 11,078,912 | 10,649,768 | 10,253,580 | 9,829,020 |
Leasing Activity: | ||||||||||
Three Months Ended | ||||||||||
Dec 31, 2015 | Sep 30, 2015 | June 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||
Leasing Activity (SF): (2) | ||||||||||
New leases | 343,876 | 216,499 | 283,695 | 458,301 | 201,269 | |||||
Renewal | 237,935 | 323,085 | 442,019 | 319,849 | 229,226 | |||||
Gross leasing | 581,811 | 539,584 | 725,714 | 778,150 | 430,495 | |||||
Expiring leases | 378,694 | 455,677 | 857,483 | 625,534 | 388,816 | |||||
Net absorption | 203,117 | 83,907 | (131,769)(3) | 152,616 | 41,679 | |||||
Retention rate | 63% | 71% | 52%(3) | 51% | 59% |
Weighted Average New/Renewal Leasing Spreads: | ||||||||||
Three Months Ended | ||||||||||
Dec 31, 2015 | Sep 30, 2015 | June 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | ||||||
Cash Rent Change | 6.4% | 5.4% | 7.0% | 4.5% | 1.9%(4) | |||||
GAAP Rent Change | 12.9% | 16.3% | 15.4% | 11.6% | 11.8%(4) |
(1) | See page 19 for the occupancy by county of our total consolidated portfolio excluding repositioning space. |
(2) | Excludes month-to-month tenants. |
(3) | Excluding the effect of two move-outs aggregating 146,133 square feet at two of our repositioning properties, Birch and Frampton, our net absorption was 14,364 square feet and our retention rate was 62%, respectively. |
(4) | Excluding the effect of one 15,040 sqft lease transaction in our San Diego market, the weighted average cash and GAAP growth for total executed leases was 3.3% and 13.3%, respectively. |
Fourth Quarter 2015 | Page 20 | |
Supplemental Financial Reporting Package |
Leasing Statistics | ||
(unaudited results, data represents consolidated portfolio only) | ||
Leasing Activity: |
# Leases Signed | SF of Leasing | Wtd. Avg. Lease Term | Rent Change - Cash | Rent Change - GAAP | ||||||||||||||
Fourth Quarter 2015: | ||||||||||||||||||
New | 61 | 343,876 | 4.8 | 9.5 | % | 17.6 | % | |||||||||||
Renewal (1) | 58 | 237,935 | 3.0 | 4.3 | % | 9.8 | % | |||||||||||
Total/Weighted Average | 119 | 581,811 | 4.1 | 6.4 | % | 12.9 | % | |||||||||||
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 | 5,806 | 83 | 49,340 | 91.5 | % | $8.78 | ||||||||||||
Orange County | — | — | 11,302 | 86.4 | % | $8.79 | ||||||||||||
San Bernardino County | 1,680 | 13 | 8,768 | 97.1 | % | $7.19 | ||||||||||||
Ventura County | 3,318 | 34 | 9,045 | 95.6 | % | $8.27 | ||||||||||||
San Diego County | 1,818 | 22 | 15,408 | 75.9 | % | $10.56 | ||||||||||||
Total/Weighted Average | 12,622 | $ | 152 | $ | 93,862 | 89.3 | % | $8.79 | ||||||||||
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 | — | 1,290,124 | — | —% | $— | |||||||||||||
MTM Tenants | 117 | 247,789 | 2,716 | 2.9% | $10.96 | |||||||||||||
2015(2) | 11 | 152,349 | 1,128 | 1.2% | $7.40 | |||||||||||||
2016 | 417 | 2,955,395 | 24,361 | 26.0% | $8.24 | |||||||||||||
2017 | 362 | 2,188,195 | 19,138 | 20.4% | $8.75 | |||||||||||||
2018 | 227 | 1,435,427 | 13,296 | 14.2% | $9.26 | |||||||||||||
2019 | 59 | 915,368 | 7,570 | 8.1% | $8.27 | |||||||||||||
2020 | 50 | 1,067,540 | 9,764 | 10.4% | $9.15 | |||||||||||||
2021 | 21 | 487,033 | 5,231 | 5.6% | $10.74 | |||||||||||||
2022 | 7 | 156,065 | 895 | 1.0% | $5.74 | |||||||||||||
2023 | 4 | 106,278 | 1,284 | 1.4% | $12.08 | |||||||||||||
2024 | 4 | 472,125 | 3,602 | 3.8% | $7.63 | |||||||||||||
Thereafter | 6 | 481,767 | 4,725 | 5.0% | $9.81 | |||||||||||||
Total Portfolio | 1,285 | 11,955,455 | $ | 93,710 | 100.0% | $8.79 |
(1) | 100% of lease renewals during the quarter achieved positive cash rent growth. |
(2) | Of the 11 leases expiring on December 31, 2015, six (6) leases aggregating 46,389 rentable square feet and $352,580 annualized base rent vacated, four (4) leases aggregating 28,967 rentable square feet and $216,653 annualized base rent subsequently renewed and one (1) lease with 76,993 rentable square feet and $558,704 annualized base rent relocated to another space. |
Fourth Quarter 2015 | Page 21 | |
Supplemental Financial Reporting Package |
Top Tenants and Lease Segmentation | ||
(unaudited results, data represents consolidated portfolio only) | ||
Top 10 Tenants: |
Tenant | Submarket | Leased SF | % of Total Ann. Base Rent | Ann. Base Rent per SF | Lease Expiration | |||||
32 Cold, LLC | Central LA | 149,157 | 2.2% | $13.80 | 1/31/2026(1) | |||||
Cosmetic Laboratories of America, LLC | Greater San Fernando Valley | 319,348 | 1.9% | $5.64 | 6/30/2020 | |||||
PureTek Corporation, a California corporation | Greater San Fernando Valley | 189,550 | 1.6% | $7.94 | 1/31/2026(2) | |||||
Valeant Pharmaceuticals International, Inc. | West Orange County | 170,865 | 1.5% | $8.24 | 12/31/2019 | |||||
Triumph Processing, Inc. | South Bay | 164,662 | 1.4% | $7.86 | 5/31/2030 | |||||
Senior Operations, Inc. | Greater San Fernando Valley | 130,800 | 1.2% | $8.88 | 11/30/2024 | |||||
Biosense Webster, Inc. | San Gabriel Valley | 89,920 | 1.2% | $12.82 | 10/31/2020(3) | |||||
KT's Kitchen | South Bay | 87,420 | 1.2% | $12.79 | 4/30/2021 | |||||
Warehouse Specialists, Inc. | San Gabriel Valley | 245,961 | 1.2% | $4.50 | 11/30/2017 | |||||
Department of Corrections | Inland Empire West | 58,781 | 1.1% | $18.25 | 3/31/2020 | |||||
Top 10 Total / Wtd. Avg. | 1,606,464 | 14.5% | $8.51 |
(1) | Includes (i) 78,280 rentable square feet expiring September 30, 2025 and (ii) 70,877 rentable square feet expiring January 31, 2026. |
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 | 907 | 1,895,912 | $ | 20,212 | 21.6% | $10.66 | ||||||
5,000‐9,999 | 157 | 1,089,921 | 10,823 | 11.5% | $9.93 | |||||||
10,000‐24,999 | 142 | 2,216,792 | 20,488 | 21.9% | $9.24 | |||||||
25,000‐49,999 | 35 | 1,229,941 | 10,495 | 11.2% | $8.53 | |||||||
>50,000 | 44 | 4,232,765 | 31,692 | 33.8% | $7.49 | |||||||
Total / Wtd. Avg. | 1,285 | 10,665,331 | $ | 93,710 | 100.0% | $8.79 |
Fourth Quarter 2015 | Page 22 | |
Supplemental Financial Reporting Package |
Capital Expenditure Summary | ||
(unaudited results, in thousands, except square feet and per square foot data) | ||
(data represents consolidated portfolio only) | ||
Quarter Ended December 31, 2015 |
Amount | SF(1) | PSF | ||||||||
Tenant Improvements: | ||||||||||
New Leases‐1st Generation | $ | 227 | 154,646 | $ | 1.47 | |||||
New Leases‐2nd Generation | $ | 258 | 156,828 | $ | 1.65 | |||||
Renewals | $ | 45 | 20,048 | $ | 2.24 | |||||
Leasing Commissions & Lease Costs: | ||||||||||
New Leases‐1st Generation | $ | 191 | 106,966 | $ | 1.79 | |||||
New Leases‐2nd Generation | $ | 336 | 223,355 | $ | 1.50 | |||||
Renewals | $ | 123 | 165,557 | $ | 0.74 | |||||
Total Recurring Capex: | ||||||||||
Recurring Capex | $ | 1,346 | 11,502,212 | $ | 0.12 | |||||
Recurring Capex % NOI | 7.1 | % | ||||||||
Recurring Capex % Operating Revenue | 5.2 | % | ||||||||
Nonrecurring Capex | $ | 4,018 | 3,842,881 | $ | 1.05 | |||||
Year Ended December 31, 2015 | ||||||||||
Amount | SF(1) | PSF | ||||||||
Tenant Improvements: | ||||||||||
New Leases ‐1st Generation | $ | 736 | 516,605 | $ | 1.42 | |||||
New Leases‐2nd Generation | $ | 1,509 | 893,499 | $ | 1.69 | |||||
Renewals | $ | 190 | 209,910 | $ | 0.91 | |||||
Leasing Commissions & Lease Costs: | ||||||||||
New Leases‐1st Generation | $ | 1,538 | 868,335 | $ | 1.77 | |||||
New Leases‐2nd Generation | $ | 1,108 | 890,044 | $ | 1.24 | |||||
Renewals | $ | 255 | 579,677 | $ | 0.44 | |||||
Total Recurring Capex: | ||||||||||
Recurring Capex | $ | 3,530 | 10,710,780 | $ | 0.33 | |||||
Recurring Capex % NOI | 5.2 | % | ||||||||
Recurring Capex % Operating Revenue | 3.8 | % | ||||||||
Nonrecurring Capex | $ | 14,472 | 6,118,145 | $ | 2.37 |
(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 2015 | Page 23 | |
Supplemental Financial Reporting Package |
Properties and Space Under Repositioning | ||
As of December 31, 2015 | (unaudited results, in thousands, except square feet) |
Repositioning Properties | ||||||||||||||||||||||||||||||||||||
Est. Construction Period | Costs Incurred | |||||||||||||||||||||||||||||||||||
Property (Submarket) | Rentable Square Feet | Acquisition Date | Start | Completion | Purchase Price | Repositioning | Cumulative Investment to date(1) | Projected Total Investment(2) | Occ % 12/31/15 | Actual Cash NOI 4Q‐2015(3) | Est. Annual Stabilized Cash NOI | Est.Period to Stabilization (months)(4) | ||||||||||||||||||||||||
CURRENT REPOSITIONING/LEASE-UP: | ||||||||||||||||||||||||||||||||||||
2610 & 2701 S. Birch St. (OC Airport)(5) | 98,230 | Jun 2014 | 2Q-2015 | 4Q-2015 | $ | 11,000 | $ | 2,596 | $ | 13,596 | $ | 13,606 | 0% | $ | (19 | ) | $ | 868 | 2 - 8 | |||||||||||||||||
1601 Alton Pkwy. (OC Airport) | 124,000 | Jun 2014 | 4Q-2014 | 4Q-2016 | $ | 13,276 | $ | 1,016 | $ | 14,292 | $ | 18,663 | 40% | $ | 103 | $ | 1,359 | 24 - 30 | ||||||||||||||||||
9401 De Soto Ave. (SF Valley) | 150,263 | Mar 2015 | 2Q-2015 | 1Q-2016 | $ | 14,075 | $ | 1,387 | $ | 15,462 | $ | 16,906 | 0% | $ | (24 | ) | $ | 1,007 | 2 - 8 | |||||||||||||||||
24105 Frampton Ave. (South Bay) | 49,841 | Mar 2014 | 2Q-2015 | 1Q-2016 | $ | 3,930 | $ | 472 | $ | 4,402 | $ | 5,323 | 0% | $ | (43 | ) | $ | 362 | 1 - 7 | |||||||||||||||||
9615 Norwalk Blvd. (Mid-Counties)(6) | 38,362 | Apr 2015 | 3Q-2015 | 2Q-2017 | $ | 9,642 | $ | 77 | $ | 9,719 | $ | 23,682 | 0% | $ | 40 | $ | 1,556 | 16 - 22 | ||||||||||||||||||
12247 Lakeland Rd. (Mid-Counties) | 24,875 | Dec 2015 | 1Q-2016 | 3Q-2016 | $ | 4,257 | $ | 0 | $ | 4,257 | $ | 5,025 | 0% | $ | 3 | $ | 297 | 10 - 16 | ||||||||||||||||||
2535 Midway Drive Phase I (Central SD) | 228,824 | Oct 2015 | 4Q-2015 | 1Q-2017 | $ | 19,295 | $ | 13 | $ | 19,308 | $ | 37,762 | 0% | $ | (64 | ) | $ | 2,696 | 23 - 29 | |||||||||||||||||
2535 Midway Drive Phase II (Central SD) | 144,920 | Oct 2015 | 4Q-2017 | 1Q-2018 | $ | 0 | $ | 0 | $ | 0 | $ | 10,198 | 0% | $ | 0 | $ | 1,493 | 24 - 36 | ||||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 859,315 | $ | 75,475 | $ | 5,561 | $ | 81,036 | $ | 131,165 | 6% | $ | (4 | ) | (7) | $ | 9,638 | ||||||||||||||||||||
FUTURE REPOSITIONING: | ||||||||||||||||||||||||||||||||||||
679-691 S. Anderson St. (Central LA) | 47,490 | Nov 2014 | 1Q-2016 | 2Q-2016 | $ | 6,490 | $ | 22 | $ | 6,512 | $ | 7,770 | 50% | $ | 53 | $ | 585 | -- | ||||||||||||||||||
COMPLETED REPOSITIONING: | ||||||||||||||||||||||||||||||||||||
7110 Rosecrans Ave. (South Bay) | 73,439 | Jan 2014 | 3Q-2014 | 1Q-2015 | $ | 5,000 | $ | 746 | $ | 5,746 | $ | 5,746 | 100% | $ | 113 | $ | 451 | Stabilized | ||||||||||||||||||
7900 Nelson Rd. (SF Valley)(8) | 202,905 | Nov 2014 | 1Q-2015 | 1Q-2016 | $ | 24,287 | $ | 1,059 | $ | 25,346 | $ | 25,887 | 100% | $ | 166 | $ | 1,697 | Stabilized | ||||||||||||||||||
605 8th Street (SF Valley)(8) | 55,715 | Aug 2014 | 4Q-2014 | 1Q-2016 | $ | 5,075 | $ | 1,448 | $ | 6,523 | $ | 6,775 | 100% | $ | (10 | ) | $ | 439 | Stabilized | |||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 332,059 | $ | 34,362 | $ | 3,253 | $ | 37,615 | $ | 38,408 | 100% | $ | 269 | (6)(7) | $ | 2,587 | |||||||||||||||||||||
Repositioning Space | ||||||||||||||||||||||||||||||||||||
Est. Construction Period | ||||||||||||||||||||||||||||||||||||
Property (Submarket) | Rentable Square Feet | Space Under Repositioning | Start | Completion | Occ % 12/31/15 | Actual Cash NOI 4Q‐2015(3) | Est. Annual Stabilized Cash NOI | Est.Period to Stabilization (months)(4) | ||||||||||||||||||||||||||||
15140 & 15148 Bledsoe St. (SF Valley) | 133,356 | 72,000 | 1Q-2015 | 1Q-2016 | 46% | $104 | (7) | $882 | 6 | |||||||||||||||||||||||||||
(1) | Cumulative investment‐to‐date includes the purchase price of the property and subsequent costs incurred 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. |
(3) | Represents the actual net operating income for each property for the three months ended December 31, 2015. For a definition and discussion of non‐GAAP financial measures, see the definitions section beginning on page 28 of this report. |
(4) | Represents the estimated remaining number of months, as of December 31, 2015, for the property to reach stabilization. Includes time to complete construction and to lease-up property. |
(5) | Repositioning at 2610 & 2701 S. Birch was completed during 4Q-2015 and as of December 31, 2015 is in lease-up. |
(6) | 9615 Norwalk has 10.26 acres of partially paved storage yard/industrial land that is currently under a short-term lease. The current projected total investment reflects the cost of designing and constructing a new building after the short-term lease ends, and assumes we do not re-lease the land on a longer term basis. If we decide to re-lease the land on a longer term basis, the projected total investment would decrease to $10,729, which reflects the cost of making improvements to the storage yard/land, including upgrading the paving and adding lighting. |
(7) | Actual NOI for the three months ended December 31, 2015, reflects the capitalization of $109 of real estate property taxes for current repositioning/lease-up, $35 for repositioning completed during the current quarter and $18 for repositioning space, respectively. We will continue to capitalize real estate property taxes during the period in which construction is taking place to get each repositioning property ready for its intended use. |
(8) | As of December 31, 2015, we have substantially completed the repositioning of 7900 Nelson Road and 605 8th Street and have fully leased both buildings. The remaining construction work, which primarily consists of completing exterior improvements, is estimated to be completed in Q1-2016. |
Fourth Quarter 2015 | Page 24 | |
Supplemental Financial Reporting Package |
Current Year Acquisitions Summary | ||
(unaudited results, data represents consolidated portfolio only) |
2015 Acquisitions | ||||||||||||||
Acquisition Date | Property Address | County | Submarket | Rentable Square Feet | Price ($ in MM) | Occ. % at Acquisition | Occ.% at December 31, 2015 | |||||||
1/21/2015 | 12907 Imperial Highway | Los Angeles | Mid-Counties | 101,080 | $12.2 | 100% | 100% | |||||||
1/21/2015 | 8902-8940 Activity Road | San Diego | Central San Diego | 112,501 | $18.5 | 93% | 98% | |||||||
3/9/2015 | 1210 North Red Gum Street | Orange | North Orange County | 64,570 | $7.7 | 100% | 100% | |||||||
3/18/2015 | 9401 De Soto Avenue(1) | Los Angeles | Greater San Fernando Valley | 150,263(2) | $14.1 | —% | —% | |||||||
4/30/2015 | 9615 Norwalk Boulevard(1) | Los Angeles | Mid-Counties | 38,362 | $9.6 | 100% | —% | |||||||
5/1/2015 | 16221 Arthur Street | Los Angeles | Mid-Counties | 61,372 | $5.8 | 100% | 100% | |||||||
5/12/2015 | 2588 & 2605 Industry Way | Los Angeles | South Bay | 164,662 | $22.0 | 100% | 100% | |||||||
5/15/2015 | 425 Hacienda Boulevard | Los Angeles | San Gabriel Valley | 51,823 | $7.0 | 100% | 100% | |||||||
6/29/2015 | 6700 S Alameda Street | Los Angeles | Central LA | 78,280 | $14.5 | 100% | 100% | |||||||
7/10/2015 | 12720-12860 Danielson Court | San Diego | Central San Diego | 112,062 | $16.9 | 100% | 100% | |||||||
7/29/2015 | 10950 Norwalk Boulevard & 12241 Lakeland Road | Los Angeles | Mid-Counties | 18,995 | $5.0 | 100% | 100% | |||||||
8/11/2015 | 610-760 W Hueneme Road & 5651-5721 Perkins Road | Ventura | Ventura | 86,904 | $9.6 | 87% | 96% | |||||||
9/1/2015 | 10701-10719 Norwalk Boulevard | Los Angeles | Mid-Counties | 58,056 | $7.2 | 100% | 100% | |||||||
9/18/2015 | 6020 Sheila Street | Los Angeles | Central LA | 70,877 | $12.2 | —% | 100% | |||||||
9/30/2015 | 9805 6th Street | San Bernardino | Inland Empire West | 81,377 | $6.9 | 100% | 100% | |||||||
10/14/2015 | 16321-16327 Arrow Highway | Los Angeles | San Gabriel Valley | 64,296 | $8.1 | 100% | 100% | |||||||
10/22/2015 | 2535 Midway Drive(1) | San Diego | Central San Diego | 373,744 | $19.3 | —% | —% | |||||||
12/8/2015 | 601-605 Milliken Avenue | San Bernardino | Inland Empire West | 128,322 | $13.0 | 96% | 95% | |||||||
12/11/2015 | 1065 E. Walnut Street | Los Angeles | South Bay | 172,420 | $16.7 | 100% | 100% | |||||||
12/16/2015 | 12247 Lakeland Road(1) | Los Angeles | Mid-Counties | 24,875 | $4.3 | —% | —% | |||||||
12/30/2015 | 17311 Nichols Lane | Orange | West Orange County | 114,912 | $17.1 | 100% | 100% |
Fourth Quarter 2015 | Page 25 | |
Supplemental Financial Reporting Package |
Net Asset Value Components | ||
At 12/31/2015 | (unaudited and in thousands, except share data) |
Net Operating Income | ||||
For the Three Months Ended | ||||
ProForma Net Operating Income (NOI)(1) | December 31, 2015 | |||
Total operating revenues | $ | 26,059 | ||
Property operating expenses | (7,118 | ) | ||
Pro forma effect of acquisitions(2) | 757 | |||
Pro forma NOI effect of properties and space under repositioning(3) | 3,002 | |||
ProForma NOI | 22,700 | |||
Fair value lease revenue | 48 | |||
Straight line rental revenue adjustment | (1,409 | ) | ||
ProForma Cash NOI | $ | 21,339 | ||
Balance Sheet Items | ||||
Other assets and liabilities | December 31, 2015 | |||
Cash and cash equivalents | $ | 5,201 | ||
Rents and other receivables, net | 3,040 | |||
Other assets | 5,523 | |||
Accounts payable, accrued expenses and other liabilities | (12,631 | ) | ||
Dividends payable | (7,806 | ) | ||
Tenant security deposits | (11,539 | ) | ||
Prepaid rents | (2,846 | ) | ||
Total other assets and liabilities | (21,058 | ) | ||
Debt and Shares Outstanding | ||||
Total consolidated debt(4) | $ | 418,698 | ||
Common shares outstanding(5) | 55,265,243 | |||
Operating partnership units outstanding(6) | 2,026,642 | |||
57,291,885 |
Fourth Quarter 2015 | Page 26 | |
Supplemental Financial Reporting Package |
Fixed Charge Coverage Ratio | ||
at 12/31/15 | (unaudited and in thousands) | |
For the Three Months Ended | ||||||||||||||
December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | ||||||||||
EBITDA | 14,606 | 13,508 | 12,364 | 11,819 | 10,334 | |||||||||
Recurring cash distributions from unconsolidated joint ventures | 46 | 54 | 37 | 34 | 89 | |||||||||
Fair value lease expense | 48 | 69 | 46 | 39 | 115 | |||||||||
Non‐cash stock compensation | 494 | 443 | 467 | 348 | 250 | |||||||||
Straight line corporate office rent expense adjustment | (1 | ) | 21 | 37 | 24 | — | ||||||||
Loss (gain) on extinguishment of debt | (33 | ) | 253 | (71 | ) | — | — | |||||||
Straight line rental revenue adjustment | (1,409 | ) | (1,039 | ) | (612 | ) | (365 | ) | (595 | ) | ||||
Capitalized payments | (345 | ) | (296 | ) | (311 | ) | (334 | ) | (302 | ) | ||||
Note receivable discount amortization | — | (38 | ) | (71 | ) | (69 | ) | (68 | ) | |||||
Gain from early repayment of note receivable | — | (581 | ) | — | — | — | ||||||||
Recurring capital expenditures | (1,346 | ) | (921 | ) | (871 | ) | (392 | ) | (908 | ) | ||||
2nd generation tenant improvements and leasing commissions | (762 | ) | (701 | ) | (893 | ) | (706 | ) | (918 | ) | ||||
Unconsolidated joint venture AFFO adjustments | (4 | ) | (5 | ) | 4 | 9 | (3 | ) | ||||||
Cash flow for fixed charge coverage calculation | 11,294 | 10,767 | 10,126 | 10,407 | 7,994 | |||||||||
Cash interest expense calculation detail: | ||||||||||||||
Interest expense | 2,724 | 2,245 | 1,658 | 1,826 | 1,655 | |||||||||
Capitalized interest | 306 | 252 | 186 | 10 | 42 | |||||||||
Note payable premium amortization | 33 | 33 | 33 | 92 | 82 | |||||||||
Amortization of deferred financing costs | (194 | ) | (200 | ) | (209 | ) | (209 | ) | (206 | ) | ||||
Cash interest expense | 2,869 | 2,330 | 1,668 | 1,719 | 1,573 | |||||||||
Fixed Charge Coverage Ratio | 3.9 | x | 4.6 | x | 6.1 | x | 6.1 | x | 5.1 | x |
Fourth Quarter 2015 | Page 27 | |
Supplemental Financial Reporting Package |
Definitions / Discussion of Non‐GAAP Financial Measures | ||
Fourth Quarter 2015 | Page 28 | |
Supplemental Financial Reporting Package |
Definitions / Discussion of Non‐GAAP Financial Measures | ||
Fourth Quarter 2015 | Page 29 | |
Supplemental Financial Reporting Package |