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 May 3, 2017 |
99.2 | First Quarter 2017 Supplemental Financial Report |
Rexford Industrial Realty, Inc. | |
May 3, 2017 | /s/ Michael S. Frankel |
Michael S. Frankel Co-Chief Executive Officer (Principal Executive Officer) | |
Rexford Industrial Realty, Inc. | |
May 3, 2017 | /s/ Howard Schwimmer |
Howard Schwimmer Co-Chief Executive Officer (Principal Executive Officer) |
Exhibit Number | Description | |
99.1 | Press Release Dated May 3, 2017 | |
99.2 | First Quarter 2017 Supplemental Financial Report |
• | Net income attributable to common stockholders of $0.06 per diluted share for the quarter ended March 31, 2017. |
• | Core Funds From Operations (FFO) of $0.23 per diluted share for the quarter ended March 31, 2017. Adjusting for non-core expenses, FFO was $0.22 per diluted share for the quarter ended March 31, 2017. |
• | Total first quarter rental revenues of $35.0 million, which represents an increase of 27.9% year-over-year. Property Net Operating Income (NOI) of $25.8 million, which represents an increase of 30.0% year-over-year. |
• | Same Property Portfolio NOI increased 6.9% in the first quarter of 2017 compared to the first quarter of 2016, driven by a 6.3% increase in Same Property Portfolio total rental revenue and a 4.6% increase in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 10.1% compared to the first quarter of 2016. |
• | Signed new and renewal leases totaling 863,368 rentable square feet. Rental rates on new and renewal leases were 23.3% higher than prior rents on a GAAP basis and 13.7% higher on a cash basis. |
• | Stabilized Same Property Portfolio occupancy was 96.0%, which represents an increase of 360 basis points year-over-year. Same Property Portfolio occupancy, inclusive of assets in value-add repositioning, was 90.1%, which represents an increase of 230 basis points year-over-year. |
• | At March 31, 2017, the consolidated portfolio including repositioning assets was 89.2% leased and 88.9% occupied, which represents an increase in occupancy of 80 basis points year-over-year. At March 31, 2017, the consolidated portfolio, excluding repositioning assets aggregating approximately 1.2 million rentable square feet, was 96.5% leased and 96.4% occupied. |
• | During the first quarter of 2017, the Company acquired one industrial property for a purchase price of $17.1 million and as of May 3, 2017, the Company has $191.2 million of industrial property under accepted Purchase Agreement or Letter of Intent, which are subject to a range of closing conditions. |
• | During the first quarter of 2017, the Company sold one industrial property for a sales price of $6.9 million. |
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Land | $ | 692,731 | $ | 683,919 | |||
Buildings and improvements | 816,912 | 811,614 | |||||
Tenant improvements | 39,595 | 38,644 | |||||
Furniture, fixtures, and equipment | 167 | 174 | |||||
Construction in progress | 21,792 | 17,778 | |||||
Total real estate held for investment | 1,571,197 | 1,552,129 | |||||
Accumulated depreciation | (143,199 | ) | (135,140 | ) | |||
Investments in real estate, net | 1,427,998 | 1,416,989 | |||||
Cash and cash equivalents | 11,676 | 15,525 | |||||
Restricted cash | 6,537 | — | |||||
Notes receivable | 6,090 | 5,934 | |||||
Rents and other receivables, net | 2,921 | 2,749 | |||||
Deferred rent receivable, net | 12,793 | 11,873 | |||||
Deferred leasing costs, net | 9,279 | 8,672 | |||||
Deferred loan costs, net | 2,352 | 847 | |||||
Acquired lease intangible assets, net | 33,050 | 36,365 | |||||
Acquired indefinite-lived intangible | 5,156 | 5,170 | |||||
Interest rate swap asset | 5,657 | 5,594 | |||||
Other assets | 5,944 | 5,290 | |||||
Acquisition related deposits | 500 | — | |||||
Total Assets | $ | 1,529,953 | $ | 1,515,008 | |||
LIABILITIES & EQUITY | |||||||
Liabilities | |||||||
Notes payable | $ | 509,693 | $ | 500,184 | |||
Interest rate swap liability | 1,356 | 2,045 | |||||
Accounts payable, accrued expenses and other liabilities | 18,005 | 13,585 | |||||
Dividends payable | 10,008 | 9,282 | |||||
Acquired lease intangible liabilities, net | 8,653 | 9,130 | |||||
Tenant security deposits | 15,311 | 15,187 | |||||
Prepaid rents | 4,785 | 3,455 | |||||
Total Liabilities | 567,811 | 552,868 | |||||
Equity | |||||||
Rexford Industrial Realty, Inc. stockholders’ equity | |||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized; 5.875% series A cumulative redeemable preferred stock, liquidation preference $25.00 per share, 3,600,000 shares outstanding as of March 31, 2017 and December 31, 2016, respectively ($90,000 liquidation preference) | 86,651 | 86,651 | |||||
Common Stock, $0.01 par value 490,000,000 shares authorized and 66,708,752 and 66,454,375 shares outstanding as of March 31, 2017 and December 31, 2016, respectively | 664 | 662 | |||||
Additional paid in capital | 912,047 | 907,834 | |||||
Cumulative distributions in excess of earnings | (64,682 | ) | (59,277 | ) | |||
Accumulated other comprehensive income | 4,176 | 3,445 | |||||
Total stockholders’ equity | 938,856 | 939,315 | |||||
Noncontrolling interests | 23,286 | 22,825 | |||||
Total Equity | 962,142 | 962,140 | |||||
Total Liabilities and Equity | $ | 1,529,953 | $ | 1,515,008 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
RENTAL REVENUES | |||||||
Rental income | $ | 29,614 | $ | 23,499 | |||
Tenant reimbursements | 5,155 | 3,558 | |||||
Other income | 232 | 313 | |||||
TOTAL RENTAL REVENUES | 35,001 | 27,370 | |||||
Management, leasing and development services | 126 | 134 | |||||
Interest income | 227 | — | |||||
TOTAL REVENUES | 35,354 | 27,504 | |||||
OPERATING EXPENSES | |||||||
Property expenses | 9,222 | 7,543 | |||||
General and administrative | 5,086 | 3,602 | |||||
Depreciation and amortization | 13,599 | 11,214 | |||||
TOTAL OPERATING EXPENSES | 27,907 | 22,359 | |||||
OTHER EXPENSES | |||||||
Acquisition expenses | 385 | 475 | |||||
Interest expense | 3,998 | 3,254 | |||||
TOTAL OTHER EXPENSES | 4,383 | 3,729 | |||||
TOTAL EXPENSES | 32,290 | 26,088 | |||||
Equity in income from unconsolidated real estate entities | 11 | 61 | |||||
Loss on extinguishment of debt | (22 | ) | — | ||||
Gains on sale of real estate | 2,668 | — | |||||
NET INCOME | 5,721 | 1,477 | |||||
Less: net income attributable to noncontrolling interest | (132 | ) | (52 | ) | |||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | 5,589 | 1,425 | |||||
Less: preferred stock dividends | (1,322 | ) | — | ||||
Less: earnings attributable to participating securities | (91 | ) | (78 | ) | |||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 4,176 | $ | 1,347 | |||
Net income attributable to common stockholders per share – basic | $ | 0.06 | $ | 0.02 | |||
Net income attributable to common stockholders per share – diluted | $ | 0.06 | $ | 0.02 |
Same Property Portfolio Occupancy: | |||||||||||
March 31, 2017 | March 31, 2016 | Change (basis points) | |||||||||
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 | 93.3% | 98.7% | 88.9% | 91.7% | 440 bps | 700 bps | |||||
Orange County | 95.9% | 96.9% | 87.6% | 88.5% | 830 bps | 840 bps | |||||
San Bernardino County | 87.6% | 87.6% | 97.0% | 97.0% | (940) bps | (940) bps | |||||
San Diego County | 76.9% | 95.4% | 76.5% | 94.9% | 40 bps | 50 bps | |||||
Ventura County | 91.3% | 91.3% | 91.6% | 91.6% | (30) bps | (30) bps | |||||
Total/Weighted Average | 90.1% | 96.0% | 87.8% | 92.4% | 230 bps | 360 bps |
(1) | Reflects the occupancy of our Same Property Portfolio adjusted for space aggregating 712,805 rentable square feet at seven properties that were in various stages of repositioning or lease-up in connection with a completed repositioning as of March 31, 2017. |
Same Property Portfolio NOI and Cash NOI | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Rental income | $ | 23,976 | $ | 22,781 | $ | 1,195 | 5.2% | ||||||
Tenant reimbursements | 3,950 | 3,517 | 433 | 12.3% | |||||||||
Other income | 209 | 180 | 29 | 16.1% | |||||||||
Total rental revenues | 28,135 | 26,478 | 1,657 | 6.3% | |||||||||
Property expenses | 7,565 | 7,232 | 333 | 4.6% | |||||||||
Same property portfolio NOI | $ | 20,570 | $ | 19,246 | $ | 1,324 | 6.9% | ||||||
Straight-line rents | (683 | ) | (1,099 | ) | 416 | (37.9)% | |||||||
Amortization above/below market leases | 81 | (6 | ) | 87 | (1450.0)% | ||||||||
Same property portfolio cash NOI | $ | 19,968 | $ | 18,141 | $ | 1,827 | 10.1% |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Same property portfolio cash NOI | $ | 19,968 | $ | 18,141 | |||
Straight-line rents | 683 | 1,099 | |||||
Amort. above/below market leases | (81 | ) | 6 | ||||
Same property portfolio NOI | 20,570 | 19,246 | |||||
Non-comparable property operating revenues | 6,866 | 892 | |||||
Non-comparable property expenses | (1,657 | ) | (311 | ) | |||
Total consolidated portfolio NOI | 25,779 | 19,827 | |||||
Add: | |||||||
Management, leasing and development services | 126 | 134 | |||||
Interest income | 227 | — | |||||
Equity in income from unconsolidated real estate entities | 11 | 61 | |||||
Gains on sale of real estate | 2,668 | — | |||||
Deduct: | |||||||
General and administrative | 5,086 | 3,602 | |||||
Depreciation and amortization | 13,599 | 11,214 | |||||
Acquisition expenses | 385 | 475 | |||||
Interest expense | 3,998 | 3,254 | |||||
Loss on extinguishment of debt | 22 | — | |||||
Net income | $ | 5,721 | $ | 1,477 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 5,721 | $ | 1,477 | |||
Add: | |||||||
Depreciation and amortization | 13,599 | 11,214 | |||||
Depreciation and amortization from unconsolidated joint ventures(1) | — | 5 | |||||
Deduct: | |||||||
Gains on sale of real estate | 2,668 | — | |||||
Gain on acquisition of unconsolidated joint venture property | 11 | — | |||||
Funds From Operations (FFO) | $ | 16,641 | $ | 12,696 | |||
Less: preferred stock dividends | (1,322 | ) | — | ||||
Less: FFO attributable to noncontrolling interest(2) | (449 | ) | (449 | ) | |||
Less: FFO attributable to participating securities(3) | (137 | ) | (124 | ) | |||
Company share of FFO | $ | 14,733 | $ | 12,123 | |||
FFO per common share - basic | $ | 0.22 | $ | 0.22 | |||
FFO per common share - diluted | $ | 0.22 | $ | 0.22 | |||
FFO | $ | 16,641 | $ | 12,696 | |||
Adjust: | |||||||
Legal fee reimbursements | — | (643 | ) | ||||
Acquisition expenses | 385 | 475 | |||||
Core FFO | $ | 17,026 | $ | 12,528 | |||
Less: preferred stock dividends | (1,322 | ) | — | ||||
Less: Core FFO attributable to noncontrolling interest(2) | (460 | ) | (443 | ) | |||
Less: Core FFO attributable to participating securities(3) | (140 | ) | (123 | ) | |||
Company share of Core FFO | $ | 15,104 | $ | 11,962 | |||
Core FFO per common share - basic | $ | 0.23 | $ | 0.22 | |||
Core FFO per common share - diluted | $ | 0.23 | $ | 0.22 | |||
Weighted-average shares of common stock outstanding – basic | 66,341 | 55,270 | |||||
Weighted-average shares of common stock outstanding – diluted | 66,626 | 55,417 |
(1) | Amount represents our 15% ownership interest in a joint venture that owned the property located at 3233 Mission Oaks Boulevard for periods prior to July 6, 2016, when we acquired the remaining 85% ownership interest. |
(2) | Noncontrolling interest represent holders of outstanding common units of the Company’s operating partnership that are owned by unit holders other than the Company. |
(3) | Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units. |
Table of Contents. | ||
Section | Page |
Corporate Data: | |
Investor Company Summary | 3 |
Financial and Portfolio Highlights and Common Stock Data | 4 |
Consolidated Financial Results: | |
Consolidated Balance Sheets | 5 |
Consolidated Statement of Operations | 6-7 |
Non-GAAP FFO, Core FFO and AFFO Reconciliations | 8-9 |
Statement of Operations Reconciliations | 10 |
Same Property Portfolio Performance | 11 |
Capitalization Summary | 12 |
Debt Summary | 13 |
Portfolio Data: | |
Portfolio Overview | 14 |
Occupancy and Leasing Trends | 15 |
Leasing Statistics | 16-17 |
Top Tenants and Lease Segmentation | 18 |
Capital Expenditure Summary | 19 |
Properties and Space Under Repositioning | 20-21 |
Current Year Acquisitions and Dispositions Summary | 22 |
Guidance | 23 |
Net Asset Value Components | 24 |
Fixed Charge Coverage Ratio | 25 |
Notes and Definitions | 26-28 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 2 | ||
Investor Company Summary. | ||
Executive Management Team | ||
Howard Schwimmer | Co-Chief Executive Officer, Director | |
Michael S. Frankel | Co-Chief Executive Officer, Director | |
Adeel Khan | Chief Financial Officer | |
David Lanzer | General Counsel and Corporate Secretary |
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 |
Investor Relations Information | ||
ICR | ||
Stephen Swett | ||
www.icrinc.com | ||
212-849-3882 |
Equity Research Coverage | ||||
Bank of America Merrill Lynch | James Feldman | (646) 855-5808 | ||
Capital One | Thomas J. Lesnick, CFA | (571) 633-8191 | ||
Citigroup Investment Research | Emmanuel Korchman | (212) 816-1382 | ||
D.A Davidson | Barry Oxford | (212) 240-9871 | ||
J.P. Morgan | Michael W. Mueller, CFA | (212) 622-6689 | ||
Jefferies LLC | Jonathan Petersen | (212) 284-1705 | ||
National Securities Corporation | John R. Benda | (212) 417-8127 | ||
Stifel Nicolaus & Co. | John W. Guinee | (443) 224-1307 | ||
Wells Fargo Securities | Blaine Heck | (443) 263-6529 | ||
Wunderlich Securities | Craig Kucera | (540) 277-3366 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 3 | ||
Financial and Portfolio Highlights and Common Stock Data. (1) | ||
(in thousands except share and per share data and portfolio statistics) |
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Financial Results: | |||||||||||||||||||
Total rental revenues | $ | 35,001 | $ | 34,449 | $ | 32,944 | $ | 30,497 | $ | 27,370 | |||||||||
Net income | $ | 5,721 | $ | 8,546 | $ | 3,061 | $ | 12,792 | $ | 1,477 | |||||||||
Net income per common share - diluted | $ | 0.06 | $ | 0.10 | $ | 0.03 | $ | 0.19 | $ | 0.02 | |||||||||
Net Operating Income (NOI) | $ | 25,779 | $ | 25,310 | $ | 23,966 | $ | 22,538 | $ | 19,827 | |||||||||
Company share of Core FFO | $ | 15,104 | $ | 15,048 | $ | 14,240 | $ | 13,920 | $ | 11,962 | |||||||||
Core FFO per common share - diluted | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.22 | |||||||||
Company share of FFO | $ | 14,733 | $ | 15,071 | $ | 13,874 | $ | 13,309 | $ | 12,123 | |||||||||
FFO per common share - diluted | $ | 0.22 | $ | 0.23 | $ | 0.21 | $ | 0.21 | $ | 0.22 | |||||||||
Adjusted EBITDA | $ | 22,292 | $ | 22,388 | $ | 20,622 | $ | 19,679 | $ | 17,074 | |||||||||
Dividend declared per common share | $ | 0.145 | $ | 0.135 | $ | 0.135 | $ | 0.135 | $ | 0.135 | |||||||||
Portfolio Statistics: | |||||||||||||||||||
Portfolio SF - consolidated | 15,069,122 | 15,020,336 | 14,588,101 | 13,640,820 | 12,152,138 | ||||||||||||||
Ending occupancy - consolidated portfolio | 88.9 | % | 91.7 | % | 89.7 | % | 90.1 | % | 88.1 | % | |||||||||
Leased percentage - consolidated portfolio | 89.2 | % | 91.8 | % | 90.6 | % | 90.3 | % | 88.4 | % | |||||||||
Leasing spreads - GAAP | 23.3 | % | 16.1 | % | 15.6 | % | 23.5 | % | 13.6 | % | |||||||||
Leasing spreads - cash | 13.7 | % | 5.9 | % | 7.0 | % | 11.0 | % | 5.6 | % | |||||||||
Same Property Performance: | |||||||||||||||||||
Same Property Portfolio SF | 11,584,982 | 9,516,944 | 9,644,030 | 9,643,837 | 9,828,422 | ||||||||||||||
Total rental revenue growth | 6.3 | % | 7.8 | % | 8.4 | % | 5.3 | % | 8.4 | % | |||||||||
Total property expense growth | 4.6 | % | 4.6 | % | 8.9 | % | 1.0 | % | 8.7 | % | |||||||||
NOI growth | 6.9 | % | 9.1 | % | 8.2 | % | 6.9 | % | 8.3 | % | |||||||||
Cash NOI growth | 10.1 | % | 9.1 | % | 6.8 | % | 9.1 | % | 8.2 | % | |||||||||
Same Property Portfolio ending occupancy | 90.1 | % | 96.1 | % | 93.7 | % | 92.5 | % | 91.7 | % | |||||||||
Stabilized Same Property Portfolio ending occupancy | 96.0 | % | 96.9 | % | 96.3 | % | 95.7 | % | 95.1 | % | |||||||||
Same Property Portfolio occupancy growth (basis points) (2) | 230 bps | 310 bps | 370 bps | 350 bps | 100 bps | ||||||||||||||
Capitalization: | |||||||||||||||||||
Common stock price at quarter end | $ | 22.52 | $ | 23.19 | $ | 22.89 | $ | 21.09 | $ | 18.16 | |||||||||
Common shares issued and outstanding | 66,375,624 | 66,166,548 | 65,725,504 | 65,679,483 | 55,276,567 | ||||||||||||||
Total shares and units issued and outstanding at period end (3) | 68,365,436 | 68,175,212 | 67,704,346 | 67,679,046 | 57,303,209 | ||||||||||||||
Weighted average shares outstanding | 66,341,138 | 65,785,226 | 65,707,476 | 64,063,337 | 55,269,598 | ||||||||||||||
Total equity market capitalization | $ | 1,629,590 | $ | 1,670,983 | $ | 1,639,752 | $ | 1,427,351 | $ | 1,040,626 | |||||||||
Total consolidated debt | $ | 512,504 | $ | 502,476 | $ | 502,776 | $ | 503,009 | $ | 445,611 | |||||||||
Total combined market capitalization (net debt and equity) | $ | 2,130,418 | $ | 2,157,934 | $ | 2,087,265 | $ | 1,901,183 | $ | 1,479,835 | |||||||||
Ratios: | |||||||||||||||||||
Net debt to total combined market capitalization | 23.5 | % | 22.6 | % | 21.4 | % | 24.9 | % | 29.7 | % | |||||||||
Net debt to Adjusted EBITDA (quarterly results annualized) | 5.6x | 5.4x | 5.4x | 6.0x | 6.4x |
(1) | For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section and reconciliation section beginning on page 26 and page 8 of this report, respectively. |
(2) | Represents the year over year percentage point change in ending occupancy of the Same Property Portfolio for the reported period. See page 11 for a summary of our current period Same Property Portfolio and page 26 for a definition of Same Property Portfolio. |
(3) | Includes the following number of OP Units held by noncontrolling interests: 1,948,144 (Mar 31, 2017), 1,966,996 (Dec 31, 2016), 1,978,842 (Sep 30, 2016), 1,999,563 (Jun 30, 2016) and 2,026,642 (Mar 31, 2016). Excludes the following number of shares of unvested restricted stock: 333,128 (Mar 31, 2017), 287,827 (Dec 31, 2016), 322,837 (Sep 30, 2016), 356,249 (Jun 30, 2016) and 380,861 (Mar 31, 2016). Current period excludes 241,691 unvested LTIP units and 514,998 unvested performance units granted during Q4-15 and Q4-16. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 4 | ||
Consolidated Balance Sheets. | ||
(unaudited and in thousands) |
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Assets | |||||||||||||||||||
Land | $ | 692,731 | $ | 683,919 | $ | 659,641 | $ | 605,694 | $ | 501,972 | |||||||||
Buildings and improvements | 816,912 | 811,614 | 778,066 | 745,968 | 667,675 | ||||||||||||||
Tenant improvements | 39,595 | 38,644 | 36,687 | 33,873 | 30,305 | ||||||||||||||
Furniture, fixtures, and equipment | 167 | 174 | 175 | 175 | 188 | ||||||||||||||
Construction in progress | 21,792 | 17,778 | 23,300 | 23,714 | 17,662 | ||||||||||||||
Total real estate held for investment | 1,571,197 | 1,552,129 | 1,497,869 | 1,409,424 | 1,217,802 | ||||||||||||||
Accumulated depreciation | (143,199 | ) | (135,140 | ) | (126,601 | ) | (117,590 | ) | (111,167 | ) | |||||||||
Investments in real estate, net | 1,427,998 | 1,416,989 | 1,371,268 | 1,291,834 | 1,106,635 | ||||||||||||||
Cash and cash equivalents | 11,676 | 15,525 | 55,263 | 29,177 | 6,402 | ||||||||||||||
Restricted cash | 6,537 | — | — | 17,979 | — | ||||||||||||||
Notes receivable | 6,090 | 5,934 | 5,817 | — | — | ||||||||||||||
Rents and other receivables, net | 2,921 | 2,749 | 2,633 | 3,010 | 2,939 | ||||||||||||||
Deferred rent receivable | 12,793 | 11,873 | 10,913 | 9,585 | 8,670 | ||||||||||||||
Deferred leasing costs, net | 9,279 | 8,672 | 8,064 | 6,531 | 6,001 | ||||||||||||||
Deferred loan costs, net | 2,352 | 847 | 996 | 1,146 | 1,296 | ||||||||||||||
Acquired lease intangible assets, net(1) | 33,050 | 36,365 | 38,093 | 37,789 | 28,802 | ||||||||||||||
Indefinite-lived intangible | 5,156 | 5,170 | 5,215 | 5,271 | 5,271 | ||||||||||||||
Interest rate swap asset | 5,657 | 5,594 | — | — | 48 | ||||||||||||||
Other assets | 5,944 | 5,290 | 5,522 | 5,589 | 5,532 | ||||||||||||||
Acquisition related deposits | 500 | — | 400 | 400 | 400 | ||||||||||||||
Investment in unconsolidated real estate entities | — | — | — | 4,203 | 4,144 | ||||||||||||||
Total Assets | $ | 1,529,953 | $ | 1,515,008 | $ | 1,504,184 | $ | 1,412,514 | $ | 1,176,140 | |||||||||
Liabilities | |||||||||||||||||||
Notes payable | $ | 509,693 | $ | 500,184 | $ | 500,428 | $ | 500,608 | $ | 444,010 | |||||||||
Interest rate swap liability | 1,356 | 2,045 | 5,938 | 7,551 | 4,949 | ||||||||||||||
Accounts payable and accrued expenses | 18,005 | 13,585 | 18,433 | 10,877 | 14,897 | ||||||||||||||
Dividends and distributions payable | 10,008 | 9,282 | 9,214 | 9,212 | 7,814 | ||||||||||||||
Acquired lease intangible liabilities, net(2) | 8,653 | 9,130 | 5,722 | 4,346 | 3,307 | ||||||||||||||
Tenant security deposits | 15,311 | 15,187 | 14,946 | 13,769 | 11,995 | ||||||||||||||
Prepaid rents | 4,785 | 3,455 | 3,945 | 3,367 | 2,667 | ||||||||||||||
Total Liabilities | 567,811 | 552,868 | 558,626 | 549,730 | 489,639 | ||||||||||||||
Equity | |||||||||||||||||||
Preferred stock, net ($90,000 liquidation preference) | 86,651 | 86,651 | 86,664 | — | — | ||||||||||||||
Common stock | 664 | 662 | 658 | 657 | 554 | ||||||||||||||
Additional paid in capital | 912,047 | 907,834 | 898,354 | 897,991 | 723,074 | ||||||||||||||
Cumulative distributions in excess of earnings | (64,682 | ) | (59,277 | ) | (56,651 | ) | (50,733 | ) | (54,192 | ) | |||||||||
Accumulated other comprehensive income (loss) | 4,176 | 3,445 | (5,764 | ) | (7,328 | ) | (4,728 | ) | |||||||||||
Total stockholders’ equity | 938,856 | 939,315 | 923,261 | 840,587 | 664,708 | ||||||||||||||
Noncontrolling interests | 23,286 | 22,825 | 22,297 | 22,197 | 21,793 | ||||||||||||||
Total Equity | 962,142 | 962,140 | 945,558 | 862,784 | 686,501 | ||||||||||||||
Total Liabilities and Equity | $ | 1,529,953 | $ | 1,515,008 | $ | 1,504,184 | $ | 1,412,514 | $ | 1,176,140 |
(1) | Includes net above-market tenant lease intangibles of $5,420 (March 31, 2017), $5,779 (December 31, 2016), $6,204 (September 30, 2016), $6,348 (June 30, 2016) and $5,818 (March 31, 2016). |
(2) | Includes net below-market tenant lease intangibles of $8,479 (March 31, 2017), $8,949 (December 31, 2016), 5,533 (September 30, 2016), $4,149 (June 30, 2016) and $3,102 (March 31, 2016). |
First Quarter 2017 Supplemental Financial Reporting Package | Page 5 | ||
Consolidated Statements of Operations. | ||
Quarterly Results | (unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Revenues | |||||||||||||||||||
Rental income | $ | 29,614 | $ | 29,691 | $ | 28,285 | $ | 26,119 | $ | 23,499 | |||||||||
Tenant reimbursements | 5,155 | 4,579 | 4,467 | 4,119 | 3,558 | ||||||||||||||
Other income | 232 | 179 | 192 | 259 | 313 | ||||||||||||||
Total Rental Revenues | 35,001 | 34,449 | 32,944 | 30,497 | 27,370 | ||||||||||||||
Management, leasing, and development services | 126 | 97 | 131 | 111 | 134 | ||||||||||||||
Interest income | 227 | 231 | 228 | — | — | ||||||||||||||
Total Revenues | 35,354 | 34,777 | 33,303 | 30,608 | 27,504 | ||||||||||||||
Operating Expenses | |||||||||||||||||||
Property expenses | 9,222 | 9,139 | 8,978 | 7,959 | 7,543 | ||||||||||||||
General and administrative | 5,086 | 4,225 | 5,067 | 4,521 | 3,602 | ||||||||||||||
Depreciation and amortization | 13,599 | 14,242 | 13,341 | 12,610 | 11,214 | ||||||||||||||
Total Operating Expenses | 27,907 | 27,606 | 27,386 | 25,090 | 22,359 | ||||||||||||||
Other Expenses | |||||||||||||||||||
Acquisition expenses | 385 | 365 | 380 | 635 | 475 | ||||||||||||||
Interest expense | 3,998 | 4,074 | 3,804 | 3,716 | 3,254 | ||||||||||||||
Total Other Expenses | 4,383 | 4,439 | 4,184 | 4,351 | 3,729 | ||||||||||||||
Total Expenses | 32,290 | 32,045 | 31,570 | 29,441 | 26,088 | ||||||||||||||
Equity in income from unconsolidated real estate entities | 11 | — | 1,328 | 62 | 61 | ||||||||||||||
Loss on extinguishment of debt | (22 | ) | — | — | — | — | |||||||||||||
Gains on sale of real estate | 2,668 | 5,814 | — | 11,563 | — | ||||||||||||||
Net Income | 5,721 | 8,546 | 3,061 | 12,792 | 1,477 | ||||||||||||||
Less: net income attributable to noncontrolling interest | (132 | ) | (217 | ) | (63 | ) | (418 | ) | (52 | ) | |||||||||
Net income attributable to Rexford Industrial Realty, Inc. | 5,589 | 8,329 | 2,998 | 12,374 | 1,425 | ||||||||||||||
Less: preferred stock dividends | (1,322 | ) | (1,322 | ) | (661 | ) | — | — | |||||||||||
Less: earnings allocated to participating securities | (91 | ) | (79 | ) | (70 | ) | (75 | ) | (78 | ) | |||||||||
Net income attributable to common stockholders | $ | 4,176 | $ | 6,928 | $ | 2,267 | $ | 12,299 | $ | 1,347 | |||||||||
Earnings per Common Share | |||||||||||||||||||
Net income attributable to common stockholders per share - basic | $ | 0.06 | $ | 0.11 | $ | 0.03 | $ | 0.19 | $ | 0.02 | |||||||||
Net income attributable to common stockholders per share - diluted | $ | 0.06 | $ | 0.10 | $ | 0.03 | $ | 0.19 | $ | 0.02 | |||||||||
Weighted average shares outstanding - basic | 66,341,138 | 65,785,226 | 65,707,476 | 64,063,337 | 55,269,598 | ||||||||||||||
Weighted average shares outstanding - diluted | 66,626,239 | 66,079,935 | 67,985,177 | 64,304,713 | 55,416,947 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 6 | ||
Consolidated Statements of Operations. | ||
Quarterly Results | (unaudited and in thousands) |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Rental Revenues | |||||||
Rental income | $ | 29,614 | $ | 23,499 | |||
Tenant reimbursements | 5,155 | 3,558 | |||||
Other income | 232 | 313 | |||||
Total Rental Revenues | 35,001 | 27,370 | |||||
Management, leasing, and development services | 126 | 134 | |||||
Interest income | 227 | — | |||||
Total Revenues | 35,354 | 27,504 | |||||
Operating Expenses | |||||||
Property expenses | 9,222 | 7,543 | |||||
General and administrative | 5,086 | 3,602 | |||||
Depreciation and amortization | 13,599 | 11,214 | |||||
Total Operating Expenses | 27,907 | 22,359 | |||||
Other Expenses | |||||||
Acquisition expenses | 385 | 475 | |||||
Interest expense | 3,998 | 3,254 | |||||
Total Other Expenses | 4,383 | 3,729 | |||||
Total Expenses | 32,290 | 26,088 | |||||
Equity in income from unconsolidated real estate entities | 11 | 61 | |||||
Loss on extinguishment of debt | (22 | ) | — | ||||
Gains on sale of real estate | 2,668 | — | |||||
Net Income | 5,721 | 1,477 | |||||
Less: net income attributable to noncontrolling interest | (132 | ) | (52 | ) | |||
Net income attributable to Rexford Industrial Realty, Inc. | 5,589 | 1,425 | |||||
Less: preferred stock dividends | (1,322 | ) | — | ||||
Less: earnings allocated to participating securities | (91 | ) | (78 | ) | |||
Net income attributable to common stockholders | $ | 4,176 | $ | 1,347 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 7 | ||
Non-GAAP FFO and Core FFO Reconciliations. (1) | ||
(unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Net Income | $ | 5,721 | $ | 8,546 | $ | 3,061 | $ | 12,792 | $ | 1,477 | |||||||||
Add: | |||||||||||||||||||
Depreciation and amortization | 13,599 | 14,242 | 13,341 | 12,610 | 11,214 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | — | — | — | 5 | 5 | ||||||||||||||
Deduct: | |||||||||||||||||||
Gains on sale of real estate | 2,668 | 5,814 | — | 11,563 | — | ||||||||||||||
Gain on acquisition of unconsolidated joint venture property | 11 | — | 1,332 | — | — | ||||||||||||||
Funds From Operations (FFO) | 16,641 | 16,974 | 15,070 | 13,844 | 12,696 | ||||||||||||||
Less: preferred stock dividends | (1,322 | ) | (1,322 | ) | (661 | ) | — | — | |||||||||||
Less: FFO attributable to noncontrolling interests(2) | (449 | ) | (457 | ) | (424 | ) | (421 | ) | (449 | ) | |||||||||
Less: FFO attributable to participating securities(3) | (137 | ) | (124 | ) | (111 | ) | (114 | ) | (124 | ) | |||||||||
Company share of FFO | $ | 14,733 | $ | 15,071 | $ | 13,874 | $ | 13,309 | $ | 12,123 | |||||||||
FFO per common share‐basic | $ | 0.22 | $ | 0.23 | $ | 0.21 | $ | 0.21 | $ | 0.22 | |||||||||
FFO per common share‐diluted | $ | 0.22 | $ | 0.23 | $ | 0.21 | $ | 0.21 | $ | 0.22 | |||||||||
FFO | $ | 16,641 | $ | 16,974 | $ | 15,070 | $ | 13,844 | $ | 12,696 | |||||||||
Adjust: | |||||||||||||||||||
Legal fee reimbursements(4) | — | (389 | ) | — | — | (643 | ) | ||||||||||||
Acquisition expenses | 385 | 365 | 380 | 635 | 475 | ||||||||||||||
Core FFO | 17,026 | 16,950 | 15,450 | 14,479 | 12,528 | ||||||||||||||
Less: preferred stock dividends | (1,322 | ) | (1,322 | ) | (661 | ) | — | — | |||||||||||
Less: Core FFO attributable to noncontrolling interests(2) | (460 | ) | (456 | ) | (435 | ) | (440 | ) | (443 | ) | |||||||||
Less: Core FFO attributable to participating securities(3) | (140 | ) | (124 | ) | (114 | ) | (119 | ) | (123 | ) | |||||||||
Company share of Core FFO | $ | 15,104 | $ | 15,048 | $ | 14,240 | $ | 13,920 | $ | 11,962 | |||||||||
Core FFO per common share‐basic | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.22 | |||||||||
Core FFO per common share‐diluted | $ | 0.23 | $ | 0.23 | $ | 0.22 | $ | 0.22 | $ | 0.22 | |||||||||
Weighted-average shares outstanding-basic | 66,341,138 | 65,785,226 | 65,707,476 | 64,063,337 | 55,269,598 | ||||||||||||||
Weighted-average shares outstanding-diluted(5) | 66,626,239 | 66,079,935 | 65,994,173 | 64,304,713 | 55,416,947 |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(2) | Noncontrolling interests represent holders of outstanding common units of the Company’s operating partnership that are owned by unit holders other than us. |
(3) | Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units. |
(4) | Legal fee reimbursements relate to prior litigation of the Company. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K. |
(5) | Weighted-average shares outstanding-diluted includes adjustments for unvested performance units and operating partnership units if their effect is dilutive for the reported period. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 8 | ||
Non-GAAP AFFO Reconciliation. (1) | ||
(unaudited and in thousands, except share and per share data) |
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Funds From Operations(2) | $ | 16,641 | $ | 16,974 | $ | 15,070 | $ | 13,844 | $ | 12,696 | |||||||||
Add: | |||||||||||||||||||
Amortization of deferred financing costs | 275 | 266 | 263 | 264 | 221 | ||||||||||||||
Net fair value lease revenue (expense) | (117 | ) | (95 | ) | (39 | ) | 60 | (4 | ) | ||||||||||
Non-cash stock compensation | 1,346 | 956 | 992 | 953 | 934 | ||||||||||||||
Straight line corporate office rent expense adjustment | (36 | ) | (50 | ) | (12 | ) | (11 | ) | (1 | ) | |||||||||
Loss on extinguishment of debt | 22 | — | — | — | — | ||||||||||||||
Deduct: | |||||||||||||||||||
Preferred stock dividends | 1,322 | 1,322 | 661 | — | — | ||||||||||||||
Straight line rental revenue adjustment(3) | 956 | 1,095 | 1,395 | 922 | 1,095 | ||||||||||||||
Capitalized payments(4) | 976 | 726 | 833 | 735 | 795 | ||||||||||||||
Note payable premium amortization | 58 | 60 | 60 | 59 | 59 | ||||||||||||||
Recurring capital expenditures(5) | 390 | 667 | 691 | 848 | 586 | ||||||||||||||
2nd generation tenant improvements and leasing commissions(6) | 1,545 | 1,311 | 1,988 | 1,483 | 461 | ||||||||||||||
Unconsolidated joint venture AFFO adjustments | — | — | 2 | 9 | 3 | ||||||||||||||
Adjusted Funds From Operations (AFFO) | $ | 12,884 | $ | 12,870 | $ | 10,644 | $ | 11,054 | $ | 10,847 |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(2) | A reconciliation of net income to Funds From Operations is set forth on page 8 of this report. |
(3) | The straight line rental revenue adjustment includes concessions of $612, $873, $1,072, $767, and $848 for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. The straight line rental revenue adjustment includes $245 of free rent under a license agreement at one of our properties for the three months ended March 31, 2016. |
(4) | Includes capitalized interest, and leasing and construction development compensation. |
(5) | Excludes nonrecurring capital expenditures of $5,388, $4,494, $7,030, $5,430, and $4,238 for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. |
(6) | Excludes 1st generation tenant improvements/space preparation and leasing commissions of $569, $636, $1,407, $1,064 and $989 for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 9 | ||
Statement of Operations Reconciliations - NOI, Cash NOI, EBITDA and Adjusted EBITDA. (1) | ||
(unaudited and in thousands) |
NOI and Cash NOI | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Rental income | $ | 29,614 | $ | 29,691 | $ | 28,285 | $ | 26,119 | $ | 23,499 | |||||||||
Tenant reimbursements | 5,155 | 4,579 | 4,467 | 4,119 | 3,558 | ||||||||||||||
Other income | 232 | 179 | 192 | 259 | 313 | ||||||||||||||
Total Rental Revenues | 35,001 | 34,449 | 32,944 | 30,497 | 27,370 | ||||||||||||||
Property Expenses | 9,222 | 9,139 | 8,978 | 7,959 | 7,543 | ||||||||||||||
Net Operating Income (NOI) | $ | 25,779 | $ | 25,310 | $ | 23,966 | $ | 22,538 | $ | 19,827 | |||||||||
Net fair value lease revenue (expense) | (117 | ) | (95 | ) | (39 | ) | 60 | (4 | ) | ||||||||||
Straight line rental revenue adjustment | (956 | ) | (1,095 | ) | (1,395 | ) | (922 | ) | (1,095 | ) | |||||||||
Cash NOI | $ | 24,706 | $ | 24,120 | $ | 22,532 | $ | 21,676 | $ | 18,728 |
EBITDA and Adjusted EBITDA | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Net income | $ | 5,721 | $ | 8,546 | $ | 3,061 | $ | 12,792 | $ | 1,477 | |||||||||
Interest expense | 3,998 | 4,074 | 3,804 | 3,716 | 3,254 | ||||||||||||||
Depreciation and amortization | 13,599 | 14,242 | 13,341 | 12,610 | 11,214 | ||||||||||||||
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures | — | — | — | 5 | 5 | ||||||||||||||
EBITDA | $ | 23,318 | $ | 26,862 | $ | 20,206 | $ | 29,123 | $ | 15,950 | |||||||||
Stock-based compensation amortization | 1,346 | 956 | 992 | 953 | 934 | ||||||||||||||
Gains on sale of real estate | (2,668 | ) | (5,814 | ) | — | (11,563 | ) | — | |||||||||||
Gain on sale of real estate from unconsolidated joint ventures | (11 | ) | — | (1,332 | ) | — | — | ||||||||||||
Loss on extinguishment of debt | 22 | — | — | — | — | ||||||||||||||
Legal fee reimbursements(2) | — | (389 | ) | — | — | (643 | ) | ||||||||||||
Acquisition expenses | 385 | 365 | 380 | 635 | 475 | ||||||||||||||
Pro forma effect of acquisitions(3) | (15 | ) | 521 | 376 | 567 | 358 | |||||||||||||
Pro forma effect of dispositions(4) | (85 | ) | (113 | ) | — | (36 | ) | — | |||||||||||
Adjusted EBITDA | $ | 22,292 | $ | 22,388 | $ | 20,622 | $ | 19,679 | $ | 17,074 |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(2) | Legal fee reimbursements relate to prior litigation of the Company. For more information, see Item 3. Legal Proceedings in our 2014 Annual Report on Form 10-K. |
(3) | Represents the estimated impact on EBITDA of Q1’17 acquisitions as if they had been acquired January 1, 2017, Q4’16 acquisitions as if they had been acquired October 1, 2016, Q3’16 acquisitions as if they had been acquired July 1, 2016, Q2’16 acquisitions as if they had been acquired April 1, 2016 and Q1’16 acquisitions as if they had been acquired January 1, 2016. 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 impact on Q1’17 EBITDA of Q1’17 dispositions as if they had been sold as of January 1, 2017, the impact on Q4’16 EBITDA of Q4’16 dispositions as if they had been sold as of October 1, 2016 and the impact on Q2’16 EBITDA of Q2’16 dispositions as if they had been sold as of April 1, 2016. See page 22 for a detail of current year disposition properties. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 10 | ||
Same Property Portfolio Performance. (1) | ||
(unaudited and dollars in thousands) |
Same Property Portfolio NOI and Cash NOI: | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Rental income | $ | 23,976 | $ | 22,781 | $ | 1,195 | 5.2% | ||||||
Tenant reimbursements | 3,950 | 3,517 | 433 | 12.3% | |||||||||
Other income | 209 | 180 | 29 | 16.1% | |||||||||
Total rental revenues | 28,135 | 26,478 | 1,657 | 6.3% | |||||||||
Property expenses | 7,565 | 7,232 | 333 | 4.6% | |||||||||
Same property portfolio NOI | $ | 20,570 | $ | 19,246 | $ | 1,324 | 6.9% | ||||||
Straight-line rents | (683 | ) | (1,099 | ) | 416 | (37.9)% | |||||||
Amort. above/below market leases | 81 | (6 | ) | 87 | (1450.0)% | ||||||||
Same property portfolio Cash NOI | $ | 19,968 | $ | 18,141 | $ | 1,827 | 10.1% | ||||||
Same Property Portfolio Summary: | |||||||||||
Same Property Portfolio | Stabilized Same Property Portfolio(2) | ||||||||||
Number of properties | 115 | 108 | |||||||||
Square Feet | 11,584,982 | 10,872,177 |
Same Property Portfolio Occupancy: | |||||||||||
March 31, 2017 | March 31, 2016 | Change (basis points) | |||||||||
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 | 93.3% | 98.7% | 88.9% | 91.7% | 440 bps | 700 bps | |||||
Orange County | 95.9% | 96.9% | 87.6% | 88.5% | 830 bps | 840 bps | |||||
San Bernardino County | 87.6% | 87.6% | 97.0% | 97.0% | (940) bps | (940) bps | |||||
San Diego County | 76.9% | 95.4% | 76.5% | 94.9% | 40 bps | 50 bps | |||||
Ventura County | 91.3% | 91.3% | 91.6% | 91.6% | (30) bps | (30) bps | |||||
Total/Weighted Average | 90.1% | 96.0% | 87.8% | 92.4% | 230 bps | 360 bps |
(1) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(2) | Reflects the square footage and occupancy of our Same Property Portfolio adjusted for space aggregating 712,805 rentable square feet at seven of our properties that were classified as repositioning or lease-up as of March 31, 2017. For additional details, refer to pages 20-21 of this report. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 11 | ||
Capitalization Summary. | ||
(unaudited and in thousands, except share and per share data) | ||
Capitalization as of March 31, 2017 |
Description | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
Common shares outstanding(1) | 66,375,624 | 66,166,548 | 65,725,504 | 65,679,483 | 55,276,567 | |||||||||||||||
Operating partnership units outstanding(2) | 1,989,812 | 2,008,664 | 1,978,842 | 1,999,563 | 2,026,642 | |||||||||||||||
Total shares and units outstanding at period end | 68,365,436 | 68,175,212 | 67,704,346 | 67,679,046 | 57,303,209 | |||||||||||||||
Share price at end of quarter | $ | 22.52 | $ | 23.19 | $ | 22.89 | $ | 21.09 | $ | 18.16 | ||||||||||
Common Stock and Operating Partnership Units - Capitalization | $ | 1,539,590 | $ | 1,580,983 | $ | 1,549,752 | $ | 1,427,351 | $ | 1,040,626 | ||||||||||
5.875% Series A Cumulative Redeemable Preferred Stock(3) | 90,000 | 90,000 | 90,000 | — | — | |||||||||||||||
Total Equity Market Capitalization | $ | 1,629,590 | $ | 1,670,983 | $ | 1,639,752 | $ | 1,427,351 | $ | 1,040,626 | ||||||||||
Total Debt | $ | 512,504 | $ | 502,476 | $ | 502,776 | $ | 503,009 | $ | 445,611 | ||||||||||
Less: Cash and cash equivalents | (11,676 | ) | (15,525 | ) | (55,263 | ) | (29,177 | ) | (6,402 | ) | ||||||||||
Net Debt | $ | 500,828 | $ | 486,951 | $ | 447,513 | $ | 473,832 | $ | 439,209 | ||||||||||
Total Combined Market Capitalization (Net Debt and Equity) | $ | 2,130,418 | $ | 2,157,934 | $ | 2,087,265 | $ | 1,901,183 | $ | 1,479,835 | ||||||||||
Net debt to total combined market capitalization | 23.5 | % | 22.6 | % | 21.4 | % | 24.9 | % | 29.7 | % | ||||||||||
Net debt to Adjusted EBITDA (quarterly results annualized)(4) | 5.6x | 5.4x | 5.4x | 6.0x | 6.4x | |||||||||||||||
(1) | Excludes the following number of shares of unvested restricted stock: 333,128 (Mar 31, 2017), 287,827 (Dec 31, 2016), 322,837 (Sep 30, 2016), 356,249 (Jun 30, 2016) and 380,861 (Mar 31, 2016). |
(2) | Represents outstanding common units of the Company’s operating partnership, Rexford Industrial Realty, LP, that are owned by unit holders other than Rexford Industrial Realty, Inc. Represents the noncontrolling interest in our operating partnership. Includes 41,668 vested LTIP Units and excludes 241,691 unvested LTIP Units and 514,998 unvested performance units. |
(3) | Value based on 3,600,000 outstanding shares of preferred stock at a liquidation preference of $25.00 per share. |
(4) | For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 12 | ||
Debt Summary. | ||
(unaudited and dollars in thousands) | ||
Debt Detail: | ||
As of March 31, 2017 |
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% | 3.817% | $ | 59,478 | 2/15/2019 | ||||||
Gilbert/La Palma | 3/1/2031 | 5.125% | 5.125% | 2,874 | -- | |||||||
12907 Imperial Highway | 4/1/2018 | 5.950% | 5.950% | 5,152 | -- | |||||||
Unsecured Debt: | ||||||||||||
$100M Term Loan Facility | 2/14/2022 | LIBOR +1.20%(4) | 3.098% | 100,000 | 12/14/2018 | |||||||
$350M Revolving Credit Facility(5) | 2/12/2021(3) | LIBOR +1.10%(4) | 2.083% | 20,000 | -- | |||||||
$225M Term Loan Facility(6) | 1/14/2023 | LIBOR +1.60%(4) | 2.583% | 225,000 | -- | |||||||
$100M Senior Notes | 8/6/2025 | 4.290% | 4.290% | 100,000 | -- | |||||||
Total Consolidated: | 3.188% | $ | 512,504 |
(1) | Includes the effect of interest rate swaps effective as of March 31, 2017, and excludes the effect of discounts/premiums, deferred loan costs and the facility fee. |
(2) | One additional one-year extension is available, provided that certain conditions are satisfied. |
(3) | Two additional six-month extensions are available, provided that certain conditions are satisfied. |
(4) | The applicable LIBOR margin will range from 1.10% to 1.50% for the revolving credit facility, 1.20% to 1.70% for the $100M term loan facility and 1.50% to 2.25% for the $225M term loan facility depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis. As a result, the effective interest rate will fluctuate from period to period. |
(5) | The credit facility is subject to a facility fee which is calculated as a percentage of the total commitment amount, regardless of usage. The facility fee ranges from 0.15% to 0.30% depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value, which is measured on a quarterly basis. |
(6) | We have two interest rate swaps that will effectively fix this $225M term loan as follows: (i) $125M at 1.349% plus the applicable LIBOR margin from 2/14/18 to 1/14/22 and (ii) $100M at 1.406% plus the applicable LIBOR margin from 8/14/18 to 1/14/22. |
Debt Composition: | ||||||||||
Category | Avg. Term Remaining (yrs)(1) | Stated Interest Rate | Effective Interest Rate | Balance | % of Total | |||||
Fixed(2) | 5.6 | 3.78% | 3.78% | $267,504 | 52% | |||||
Variable(2) | 5.6 | LIBOR + 1.56% | 2.54% | $245,000 | 48% | |||||
Secured | 2.7 | 4.04% | $67,504 | 13% | ||||||
Unsecured | 6.1 | 3.06% | $445,000 | 87% |
(1) | The weighted average remaining term to maturity of our consolidated debt is 5.6 years. |
(2) | If all of our interest rate swaps were effective as of March 31, 2017, our consolidated debt would be 96% fixed and 4% variable. See footnote (6) above. |
Debt Maturity Schedule: | ||||||||||||||||||
Year | Secured(1) | Unsecured | Total | % Total | Effective Interest Rate | |||||||||||||
2017 | $ | — | $ | — | $ | — | — | % | — | % | ||||||||
2018 | 5,152 | — | 5,152 | 1 | % | 5.950 | % | |||||||||||
2019 | 59,478 | — | 59,478 | 12 | % | 3.817 | % | |||||||||||
2020 | — | — | — | — | % | — | % | |||||||||||
2021 | — | 20,000 | 20,000 | 4 | % | 2.083 | % | |||||||||||
Thereafter | 2,874 | 425,000 | 427,874 | 83 | % | 3.119 | % | |||||||||||
Total | $ | 67,504 | $ | 445,000 | $ | 512,504 | 100 | % | 3.188 | % |
(1) | Excludes the effect of scheduled monthly principal payments on amortizing loans. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 13 | ||
Portfolio Overview. | ||
at 3/31/17 | (unaudited results) | |
Consolidated Portfolio: |
Rentable Square Feet | Occupancy % | Leased % | 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 Portfolio | Total (in 000’s)(2) | per SF | |||||||||||||||||||||
Central LA | 4 | 387,310 | — | 387,310 | 93.9 | % | — | % | 93.9 | % | 100.0 | % | 100.0 | % | $ | 3,690 | $10.15 | |||||||||||||||
Greater San Fernando Valley | 26 | 2,601,477 | 309,036 | 2,910,513 | 92.6 | % | 64.0 | % | 89.5 | % | 98.4 | % | 89.6 | % | 25,177 | $9.66 | ||||||||||||||||
Mid-Counties | 9 | 672,090 | — | 672,090 | 100.0 | % | — | % | 100.0 | % | 100.0 | % | 100.0 | % | 6,358 | $9.46 | ||||||||||||||||
San Gabriel Valley | 15 | 1,329,214 | 552,210 | 1,881,424 | 91.0 | % | 72.9 | % | 85.7 | % | 99.2 | % | 85.7 | % | 12,282 | $7.62 | ||||||||||||||||
South Bay | 13 | 961,479 | 133,925 | 1,095,404 | 93.5 | % | 63.2 | % | 89.8 | % | 97.9 | % | 89.8 | % | 8,988 | $9.14 | ||||||||||||||||
Los Angeles County | 67 | 5,951,570 | 995,171 | 6,946,741 | 93.3 | % | 68.8 | % | 89.8 | % | 98.8 | % | 90.2 | % | 56,495 | $9.06 | ||||||||||||||||
North Orange County | 6 | 528,256 | 345,756 | 874,012 | 97.2 | % | 95.7 | % | 96.6 | % | 96.6 | % | 96.7 | % | 6,841 | $8.11 | ||||||||||||||||
OC Airport | 8 | 511,419 | 243,371 | 754,790 | 91.9 | % | 100.0 | % | 94.5 | % | 96.3 | % | 94.7 | % | 6,823 | $9.56 | ||||||||||||||||
South Orange County | 3 | 46,178 | 283,280 | 329,458 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 2,937 | $8.91 | ||||||||||||||||
West Orange County | 3 | 285,777 | 207,953 | 493,730 | 100.0 | % | 48.1 | % | 78.1 | % | 100.0 | % | 78.1 | % | 2,920 | $7.57 | ||||||||||||||||
Orange County | 20 | 1,371,630 | 1,080,360 | 2,451,990 | 95.9 | % | 88.6 | % | 92.7 | % | 97.5 | % | 92.8 | % | 19,521 | $8.59 | ||||||||||||||||
Inland Empire East | 2 | 85,282 | — | 85,282 | 96.8 | % | — | % | 96.8 | % | 96.8 | % | 96.8 | % | 554 | $6.71 | ||||||||||||||||
Inland Empire West | 13 | 1,108,197 | 643,086 | 1,751,283 | 86.9 | % | 100.0 | % | 91.7 | % | 91.7 | % | 91.9 | % | 11,071 | $6.89 | ||||||||||||||||
San Bernardino County | 15 | 1,193,479 | 643,086 | 1,836,565 | 87.6 | % | 100.0 | % | 92.0 | % | 92.0 | % | 92.1 | % | 11,625 | $6.88 | ||||||||||||||||
Ventura | 12 | 1,144,550 | 455,864 | 1,600,414 | 91.3 | % | 80.3 | % | 88.1 | % | 90.5 | % | 88.7 | % | 12,040 | $8.54 | ||||||||||||||||
Ventura County | 12 | 1,144,550 | 455,864 | 1,600,414 | 91.3 | % | 80.3 | % | 88.1 | % | 90.5 | % | 88.7 | % | 12,040 | $8.54 | ||||||||||||||||
Central San Diego | 14 | 1,262,794 | 254,919 | 1,517,713 | 66.6 | % | 97.3 | % | 71.8 | % | 95.2 | % | 72.0 | % | 12,371 | $11.36 | ||||||||||||||||
North County San Diego | 7 | 584,258 | 54,740 | 638,998 | 96.5 | % | 100.0 | % | 96.8 | % | 96.8 | % | 96.8 | % | 6,077 | $9.83 | ||||||||||||||||
South County San Diego | 1 | 76,701 | — | 76,701 | 96.8 | % | — | % | 96.8 | % | 96.8 | % | 96.8 | % | 696 | $9.37 | ||||||||||||||||
San Diego County | 22 | 1,923,753 | 309,659 | 2,233,412 | 76.9 | % | 97.8 | % | 79.8 | % | 95.8 | % | 79.9 | % | 19,144 | $10.74 | ||||||||||||||||
CONSOLIDATED TOTAL / WTD AVG | 136 | 11,584,982 | 3,484,140 | 15,069,122 | 90.1 | % | 84.8 | % | 88.9 | % | 96.4 | % | 89.2 | % | $ | 118,825 | $8.87 |
(1) | Excludes space aggregating 1,170,845 square feet at 12 of our properties that were in various stages of repositioning or lease-up in connection with a completed repositioning as of March 31, 2017. See pages 20-21 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 March 31, 2017, multiplied by 12 and then aggregated by market. Excludes billboard and antenna revenue and rent abatements. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 14 | ||
Occupancy and Leasing Trends. | ||
(unaudited results, data represents consolidated portfolio only) | ||
Occupancy by County: |
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | June 30, 2016 | Mar 31, 2016 | ||||||
Occupancy:(1) | ||||||||||
Los Angeles County | 89.8% | 92.1% | 91.2% | 90.6% | 89.3% | |||||
Orange County | 92.7% | 96.1% | 92.3% | 91.8% | 88.1% | |||||
San Bernardino County | 92.0% | 96.4% | 96.1% | 97.9% | 96.7% | |||||
Ventura County | 88.1% | 92.3% | 86.2% | 91.8% | 91.6% | |||||
San Diego County | 79.8% | 81.0% | 79.5% | 79.9% | 77.2% | |||||
Total/Weighted Average | 88.9% | 91.7% | 89.7% | 90.1% | 88.1% | |||||
Consolidated Portfolio SF | 15,069,122 | 15,020,336 | 14,588,101 | 13,640,820 | 12,152,138 |
Leasing Activity: | ||||||||||
Three Months Ended | ||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | June 30, 2016 | Mar 31, 2016 | ||||||
Leasing Activity (SF):(2) | ||||||||||
New leases(3) | 423,766 | 401,081 | 519,212 | 476,858 | 248,520 | |||||
Renewal leases(3) | 439,602 | 363,601 | 318,179 | 598,301 | 712,771 | |||||
Gross leasing | 863,368 | 764,682 | 837,391 | 1,075,159 | 961,291 | |||||
Expiring leases | 914,098 | 477,966 | 619,461 | 936,655 | 1,047,330 | |||||
Expiring leases - placed into repositioning | 334,689 | — | — | — | 23,745 | |||||
Net absorption | (385,419) | 286,716 | 217,930 | 138,504 | (109,784) | |||||
Retention rate(4) | 57% | 76% | 51% | 64% | 68% |
Weighted Average New / Renewal Leasing Spreads: | ||||||||||
Three Months Ended | ||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | June 30, 2016 | Mar 31, 2016 | ||||||
GAAP Rent Change | 23.3% | 16.1% | 15.6% | 23.5% | 13.6% | |||||
Cash Rent Change | 13.7% | 5.9% | 7.0% | 11.0% | 5.6% |
(1) | See page 14 for the occupancy by county of our total consolidated portfolio excluding repositioning space. |
(2) | Excludes month-to-month tenants. |
(3) | Renewal leasing activity for Q1’17 excludes relocation/expansions within Rexford’s portfolio totaling 77,738 rentable square feet, which are included as part of new leasing activity. |
(4) | Retention rate is calculated as renewal lease square footage plus relocation/expansion square footage noted in (3) above, divided by expiring lease square footage (excluding expiring lease square footage placed into repositioning). |
First Quarter 2017 Supplemental Financial Reporting Package | Page 15 | ||
Leasing Statistics. | ||
(unaudited results, data represents consolidated portfolio only) | ||
Leasing Activity: |
# Leases Signed | SF of Leasing | Weighted Average Lease Term (Years) | ||||
First Quarter 2017: | ||||||
New | 65 | 423,766 | 4.7 | |||
Renewal | 74 | 439,602 | 3.3 | |||
Total/Weighted Average | 139 | 863,368 | 4.0 |
Change in Annual Rental Rates for Current Quarter Leases | ||||||||||||||
GAAP Rent | Cash Rent | |||||||||||||
First Quarter 2017: | Current Lease | Prior Lease | Rent Change - GAAP | Weighted Average Abatement (Months) | Starting Cash Rent - Current Lease | Expiring Cash Rent - Prior Lease | Rent Change - Cash | |||||||
New(1) | $9.81 | $7.42 | 32.2% | 1.0 | $9.55 | $7.93 | 20.4% | |||||||
Renewal | $10.41 | $8.83 | 17.9% | 0.6 | $10.19 | $9.30 | 9.6% | |||||||
Total/Weighted Average | $10.16 | $8.24 | 23.3% | 0.8 | $9.92 | $8.73 | 13.7% |
Uncommenced Leases by County: | |||||||||||||||||||||
Market | Leased SF | Uncommenced Leases Annualized Base Rent (in thousands) | Total Pro Forma Annualized Base Rent (in thousands) | Pro Forma Occupancy | Pro Forma Occupancy Excluding Repositioning | Pro Forma Annualized Base Rent per SF | |||||||||||||||
Los Angeles County | 26,574 | $ | 338 | $ | 56,834 | 90.2 | % | 98.8 | % | $9.07 | |||||||||||
Orange County | 2,487 | 29 | 19,550 | 92.8 | % | 97.7 | % | $8.59 | |||||||||||||
San Bernardino County | 2,880 | 30 | 11,655 | 92.1 | % | 92.1 | % | $6.89 | |||||||||||||
San Diego County | 2,800 | 41 | 19,185 | 79.9 | % | 96.0 | % | $10.75 | |||||||||||||
Ventura County | 8,507 | 83 | 12,122 | 88.7 | % | 91.1 | % | $8.54 | |||||||||||||
Total/Weighted Average | 43,248 | $ | 521 | $ | 119,346 | 89.2 | % | 96.5 | % | $8.88 |
(1) | GAAP and cash rent statistics for new leases exclude 17 leases aggregating 107,205 rentable square feet for which there was no comparable lease data. Of these 17 excluded leases, two leases aggregating 35,618 rentable square feet relate to recently completed repositioning/lease-up projects. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year, (iv) space with different lease structures (for example a change from a gross lease to a modified gross lease or a increase or decrease in the leased square footage) or (v) lease terms shorter than six months. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 16 | ||
Leasing Statistics (Continued). | ||
(unaudited results, data represents consolidated portfolio only) | ||
Lease Expiration Schedule for Leases in Place as of March 31, 2017: |
Year of Lease Expiration | # of Leases Expiring | Total Rentable SF | Annualized Base Rent (in thousands) | Annualized Base Rent per SF | ||||||
Available | — | 651,897 | $ | — | $— | |||||
Current Repositioning(1) | — | 982,269 | — | $— | ||||||
MTM Tenants | 105 | 268,119 | 2,318 | $8.64 | ||||||
2017 | 277 | 2,040,149 | 18,477 | $9.06 | ||||||
2018 | 329 | 1,906,083 | 18,029 | $9.46 | ||||||
2019 | 234 | 1,971,099 | 17,734 | $9.00 | ||||||
2020 | 122 | 1,842,879 | 16,157 | $8.77 | ||||||
2021 | 85 | 2,363,265 | 19,914 | $8.43 | ||||||
2022 | 35 | 846,397 | 6,597 | $7.79 | ||||||
2023 | 13 | 445,013 | 4,649 | $10.45 | ||||||
2024 | 10 | 617,235 | 5,796 | $9.39 | ||||||
2025 | 4 | 260,467 | 2,479 | $9.52 | ||||||
2026 | 6 | 273,904 | 3,051 | $11.14 | ||||||
Thereafter | 7 | 600,346 | 4,145 | $6.90 | ||||||
Total Portfolio | 1,227 | 15,069,122 | $ | 119,346 | $8.88 |
(1) | Represents space at nine of our properties that were classified as current repositioning as of March 31, 2017. See pages 20-21 for additional details on these properties. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 17 | ||
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 | 1.7% | $13.21 | 3/31/2026(1) | |||||
Cosmetic Laboratories of America, LLC | Greater San Fernando Valley | 319,348 | 1.6% | $5.95 | 6/30/2020 | |||||
Triscenic Production Services, Inc. | Greater San Fernando Valley | 255,303 | 1.6% | $7.38 | 3/31/2022(2) | |||||
Technicolor Home Entertainment Services, Inc. | Ventura | 144,465 | 1.2% | $10.01 | 5/31/2018(3) | |||||
Valeant Pharmaceuticals International, Inc. | West Orange County | 170,865 | 1.2% | $8.24 | 12/31/2019 | |||||
Triumph Processing, Inc. | South Bay | 164,662 | 1.1% | $8.23 | 5/31/2030 | |||||
Heritage Bag Company | Inland Empire West | 284,676 | 1.0% | $4.34 | 11/27/2030 | |||||
Senior Operations, Inc. | Greater San Fernando Valley | 130,800 | 1.0% | $9.41 | 11/30/2024 | |||||
Cox Communications California, LLC | South Orange County | 102,299 | 1.0% | $11.49 | 9/30/2021 | |||||
Biosense Webster | San Gabriel Valley | 89,920 | 1.0% | $12.99 | 10/31/2020(4) | |||||
Top 10 Total / Weighted Average | 1,811,495 | 12.4% | $8.16 |
(1) | Includes (i) 78,280 rentable square feet expiring September 30, 2025, and (ii) 70,877 rentable square feet expiring March 31, 2026. |
(2) | Includes (i) 38,766 rentable square feet expiring November 30, 2019, (ii) 147,318 rentable square feet expiring September 30, 2021, and (iii) 69,219 rentable square feet expiring March 31, 2022. |
(3) | Includes (i) 107,965 rentable square feet expiring May 31, 2017, and (ii) 36,500 rentable square feet expiring May 31, 2018. We plan to reposition the 107,965 rentable square foot space in Q2-2017 after the tenant vacates. Please refer to page 21 for additional details. |
(4) | Includes (i) 12,800 rentable square feet expiring September 30, 2017, (ii) 1,120 rentable square feet expiring September 30, 2019, and (iii) 76,000 rentable square feet expiring October 31, 2020. |
Lease Segmentation by Size: | ||||||||||||||||
Square Feet | Number of Leases | Rentable SF | Leased % | Leased % Excluding Repositioning | Ann. Base Rent (in thousands) | % of Total Ann. Base Rent | Ann. Base Rent per SF | |||||||||
<4,999 | 804 | 1,834,518 | 92.2% | 92.7% | $ | 19,123 | 16.0% | $11.30 | ||||||||
5,000 - 9,999 | 158 | 1,201,261 | 90.7% | 94.9% | 11,513 | 9.7% | $10.56 | |||||||||
10,000 - 24,999 | 156 | 2,867,179 | 88.1% | 94.4% | 24,737 | 20.7% | $9.79 | |||||||||
25,000 - 49,999 | 48 | 1,840,863 | 93.8% | 96.0% | 16,319 | 13.7% | $9.45 | |||||||||
>50,000 | 61 | 7,325,301 | 87.4% | 98.9% | 47,654 | 39.9% | $7.45 | |||||||||
Total / Weighted Average | 1,227 | 15,069,122 | 89.2% | 96.5% | $ | 119,346 | 100.0% | $8.88 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 18 | ||
Capital Expenditure Summary. | ||
(unaudited results, in thousands, except square feet and per square foot data) | ||
Three Months Ended March 31, 2017 |
Amount | SF(1) | PSF | ||||||||
Tenant Improvements and Space Preparation: | ||||||||||
New Leases‐1st Generation | $ | 453 | 323,121 | $ | 1.40 | |||||
New Leases‐2nd Generation | $ | 483 | 364,195 | $ | 1.33 | |||||
Renewals | $ | 65 | 209,863 | $ | 0.31 | |||||
Leasing Commissions & Lease Costs: | ||||||||||
New Leases‐1st Generation | $ | 116 | 52,930 | $ | 2.19 | |||||
New Leases‐2nd Generation | $ | 835 | 321,393 | $ | 2.60 | |||||
Renewals | $ | 162 | 158,566 | $ | 1.02 | |||||
Total Recurring Capex: | ||||||||||
Recurring Capex | $ | 390 | 15,072,955 | $ | 0.03 | |||||
Recurring Capex % of NOI | 1.5 | % | ||||||||
Recurring Capex % of Operating Revenue | 1.1 | % | ||||||||
Nonrecurring Capex | $ | 5,388 | 7,046,337 | $ | 0.76 | |||||
(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. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 19 | ||
Properties and Space Under Repositioning. (1) | ||
As of March 31, 2017 | (unaudited results, in thousands, except square feet) |
Repositioning Properties | ||||||||||||||||||||||||||||||||||||||
Estimated Construction Period | Costs Incurred | |||||||||||||||||||||||||||||||||||||
Property (Submarket) | Total Property Rentable Square Feet | Space Under Repositioning/Lease-Up | Total Property Occ % 3/31/17 | Same Property Portfolio | Start | Target Completion | Purchase Price | Repositioning | Cumulative Investment to date(2) | Projected Total Investment(3) | Actual Cash NOI 1Q-2017(4) | Est. Annual Stabilized Cash NOI(5) | Est. Period until Stabilized (months)(6) | |||||||||||||||||||||||||
CURRENT REPOSITIONING: | ||||||||||||||||||||||||||||||||||||||
2535 Midway Drive Phase I (Central SD) | 233,951 | 233,951 | 0% | 4Q-2015 | 1Q-2018 | $ | 19,295 | $ | 1,184 | $ | 20,479 | $ | 48,453 | $ | (70 | ) | $ | 3,330 | 23 - 25 | |||||||||||||||||||
2535 Midway Drive Phase II (Central SD) | 139,793 | 139,793 | 0% | 2Q-2018 | 3Q-2018 | $ | — | $ | — | $ | — | $ | 19,364 | $ | 0 | $ | 3,357 | 29 - 31 | ||||||||||||||||||||
2535 Midway Drive - Total Phases I & II | 373,744 | 373,744 | 0% | Y | $ | 19,295 | $ | 1,184 | $ | 20,479 | $ | 67,817 | $ | (70 | ) | $ | 6,687 | |||||||||||||||||||||
14750 Nelson (San Gabriel Valley) | 147,360 | 147,360 | (7) | 0% | N | 3Q-2016 | 1Q-2018 | $ | 15,000 | $ | 222 | $ | 15,222 | $ | 26,743 | $ | (25 | ) | $ | 1,774 | 17 - 23 | |||||||||||||||||
301-445 Figueroa Street (South Bay) (8) | 133,925 | 49,346 | 63% | N | 4Q-2016 | 3Q-2017 | $ | 13,000 | $ | 585 | $ | 13,585 | $ | 16,258 | $ | 88 | $ | 1,128 | 12 - 15 | |||||||||||||||||||
3880 Valley Blvd. (San Gabriel Valley) | 108,703 | 108,703 | 0% | Y | 1Q-2017 | 3Q-2017 | $ | 9,631 | $ | 610 | $ | 10,241 | $ | 12,392 | $ | (33 | ) | $ | 813 | 9 - 12 | ||||||||||||||||||
12131 Western Avenue (West OC) | 207,953 | 107,953 | 48% | N | 1Q-2017 | 2Q-2017 | $ | 27,000 | $ | 975 | $ | 27,975 | $ | 30,104 | $ | 14 | $ | 1,758 | 9 - 12 | |||||||||||||||||||
28903 Avenue Paine - Repositioning | 111,346 | 111,346 | 0% | 1Q-2017 | 1Q-2018 | $ | 17,060 | $ | — | $ | 17,060 | $ | 19,691 | $ | (18 | ) | $ | 849 | 11 - 14 | |||||||||||||||||||
28903 Avenue Paine - Development | — | — | 0% | 1Q-2017 | 4Q-2018 | $ | — | $ | — | $ | — | $ | 9,275 | $ | — | $ | 966 | 24 - 27 | ||||||||||||||||||||
28903 Avenue Paine (SF Valley) | 111,346 | 111,346 | (9) | 0% | N | 1Q-2017 | 4Q-2018 | $ | 17,060 | $ | — | $ | 17,060 | $ | 28,966 | $ | (18 | ) | $ | 1,815 | 11 - 27 | |||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 1,083,031 | 898,452 | 17% | $ | 100,986 | $ | 3,576 | $ | 104,562 | $ | 182,280 | $ | (44 | ) | (10) | $ | 13,975 | |||||||||||||||||||||
LEASE-UP: | ||||||||||||||||||||||||||||||||||||||
1601 Alton Pkwy. (OC Airport) | 124,000 | 14,000 | 89% | Y | 4Q-2014 | 2Q-2017 | $ | 13,276 | $ | 5,493 | $ | 18,769 | $ | 19,100 | $ | 256 | $ | 1,330 | 0 - 4 | |||||||||||||||||||
9401 De Soto Avenue (SF Valley) | 150,831 | 150,831 | 0% | Y | 2Q-2015 | 1Q-2016 | $ | 14,075 | $ | 2,696 | $ | 16,771 | $ | 16,992 | $ | (92 | ) | $ | 1,165 | 0 - 6 | ||||||||||||||||||
679-691 S. Anderson St. (Central LA) | 47,490 | 23,745 | 50% | Y | 1Q-2016 | 3Q-2016 | $ | 6,490 | $ | 635 | $ | 7,125 | $ | 7,125 | $ | 1 | $ | 437 | See note (11) | |||||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 322,321 | 188,576 | 42% | $ | 33,841 | $ | 8,824 | $ | 42,665 | $ | 43,217 | $ | 165 | (10) | $ | 2,932 | ||||||||||||||||||||||
FUTURE REPOSITIONING: | ||||||||||||||||||||||||||||||||||||||
9615 Norwalk Blvd. (Mid-Counties) (12) | 38,362 | — | 100% | Y | 1Q-2018 | 1Q-2019 | $ | 9,642 | $ | 333 | $ | 9,975 | $ | 23,682 | $ | 182 | $ | 1,556 | TBD |
(1) | See page 26 for a definition of Properties and Space Under Repositioning. |
(2) | Cumulative investment-to-date includes the purchase price of the property and subsequent costs incurred for nonrecurring capital expenditures. |
(3) | 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. |
(4) | Represents the actual cash NOI for each property for the three months ended March 31, 2017. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(5) | Represents management’s estimate of each property’s cash NOI upon stabilization. Actual results may vary materially from our estimates. The Company does not provide a reconciliation to net income on a consolidated basis, because it is unable to provide a meaningful or accurate estimation of reconciling items due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income. |
(6) | Represents the estimated remaining number of months, as of March 31, 2017, for the property to reach stabilization. Includes time to complete construction and lease-up the property. Actual number of months required to reach stabilization may vary materially from our estimates. |
(7) | Represents the RSF of the existing acquired building. Upon completion, the property will be approximately 200,000 RSF, which reflects an increase in RSF from the construction of two additional buildings on the excess land. |
(8) | The property located at 301-445 Figueroa has 14 units. The repositioning of this property will be completed in phases beginning with four units aggregating 49,346 RSF that are currently vacant. The estimated construction and stabilization periods presented above reflect completion of these four units as well as planned exterior work. The projected total investment and estimated annual stabilized Cash NOI presented above reflect the repositioning of all 14 units and exterior work. |
(9) | Represents the RSF of the existing acquired building. Upon completion, the property will be approximately 224,000 RSF, which reflects an increase in RSF from the construction of one additional building on the excess land. |
(10) | Actual NOI for the three months ended March 31, 2017, reflects the capitalization of $285 thousand of real estate property taxes and insurance for current repositioning and $5 thousand for lease-up properties, respectively. We will continue to capitalize real estate property taxes and insurance during the period in which construction is taking place to get each repositioning property ready for its intended use. |
(11) | As of March 31, 2017, property is 100% leased. |
(12) | 9615 Norwalk has 10.26 acres of partially paved storage yard/industrial land that is currently under a MTM lease and generating $85 thousand per month in short term base rent. The current projected total investment and estimated stabilized cash NOI reflects the construction and lease-up of a new approximately 200,000 RSF building. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 20 | ||
Properties and Space Under Repositioning (Continued). (1) | ||
As of March 31, 2017 | (unaudited results, in thousands, except square feet) |
Repositioning Space | ||||||||||||||||||||||||||||||
Estimated Construction Period | Costs Incurred | |||||||||||||||||||||||||||||
Property (Submarket) | Property Rentable Square Feet | Space Under Repositioning | Same Property Portfolio | Start | Target Completion | Repositioning | Projected Total Investment(2) | Total Property Occ % 3/31/17 | Actual Cash NOI 1Q-2017(3) | Est. Annual Stabilized Cash NOI(4) | Est.Period until Stabilized (months)(5) | |||||||||||||||||||
CURRENT REPOSITIONING: | ||||||||||||||||||||||||||||||
228th Street (South Bay)(6) | 89,236 | 23,749 | Y | 1Q-2016 | 3Q-2017 | $ | 1,100 | $ | 1,550 | 66% | $ | (4 | ) | $ | 207 | 4 - 8 | ||||||||||||||
18118 - 18120 S. Broadway St. (South Bay)(8) | 78,183 | 18,033 | Y | 1Q-2017 | 2Q-2017 | $ | 29 | $ | 412 | 77% | $ | (6 | ) | $ | 138 | 3 - 6 | ||||||||||||||
3233 Mission Oaks Blvd. (Ventura)(9) | 455,864 | 42,035 | N | 1Q-2017 | 3Q-2017 | $ | 72 | $ | 947 | 80% | $ | (5 | ) | $ | 249 | 8 - 11 | ||||||||||||||
TOTAL | 623,283 | 83,817 | $ | 1,201 | $ | 2,909 | $ | (15 | ) | (7) | $ | 594 | ||||||||||||||||||
FUTURE REPOSITIONING: | ||||||||||||||||||||||||||||||
3233 Mission Oaks Blvd. (Ventura)(10) | 455,864 | — | N | 2Q-2017 | 1Q-2018 | $ | 106 | $ | 5,354 | 80% | $ | 212 | $ | 852 | TBD | |||||||||||||||
Completed and Leased Repositionings | ||||||||||||||||||||||||||||||
Property (Submarket) | Rentable Square Feet | Stabilized Period | Stabilized Yield | |||||||||||||||||||||||||||
7110 Rosecrans Ave. (South Bay) | 73,439 | 2Q-2015 | 7.9% | |||||||||||||||||||||||||||
7900 Nelson Rd. (SF Valley) | 202,905 | 4Q-2015 | 6.6% | |||||||||||||||||||||||||||
605 8th Street (SF Valley) | 55,715 | 4Q-2015 | 6.8% | |||||||||||||||||||||||||||
24105 Frampton Ave. (South Bay) | 49,841 | 3Q-2016 | 7.0% | |||||||||||||||||||||||||||
12247 Lakeland Rd. (Mid-Counties) | 24,875 | 3Q-2016 | 6.4% | |||||||||||||||||||||||||||
2610 & 2701 S. Birch St. (OC Airport) | 98,230 | 4Q-2016 | 7.1% | |||||||||||||||||||||||||||
15140 & 15148 Bledsoe St. (SF Valley) | 133,356 | 4Q-2016 | N/A(11) | |||||||||||||||||||||||||||
TOTAL/WEIGHTED AVERAGE | 638,361 | 6.8% | ||||||||||||||||||||||||||||
(1) | See page 27 for a definition of Properties and Space Under Repositioning. |
(2) | Projected total investment represents the estimated nonrecurring capital expenditures to be incurred on each repositioning project to reach completion. |
(3) | Represents the actual cash NOI for the repositioning space for the three months ended March 31, 2017. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 26 of this report. |
(4) | Based on current management estimates. Actual results may vary materially from our estimates. The Company does not provide a reconciliation to net income on a consolidated basis, because it is unable to provide a meaningful or accurate estimation of reconciling items due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income. |
(5) | Represents the estimated remaining number of months, as of March 31, 2017, for the space to reach stabilization. Includes time to complete construction and lease-up the space. Actual number of months required to reach stabilization may vary materially from our estimates. |
(6) | The property located at 228th Street includes eight buildings, of which three buildings aggregating 23,749 RSF were under repositioning as of March 31, 2017. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of only these three buildings. |
(7) | Actual NOI for the three months ended March 31, 2017, reflects the capitalization of $16 thousand of real estate property taxes and insurance for repositioning space. We will continue to capitalize real estate property taxes and insurance during the period in which construction is taking place to get each repositioning space ready for its intended use. |
(8) | The property located at 18118-18120 S. Broadway includes three building, of which one building with 18,033 RSF was under repositioning as of March 31, 2017. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of this one building. |
(9) | As of March 31, 2017, we are repositioning 42,035 RSF at this property. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of this space. |
(10) | We plan to reposition 107,965 RSF of warehouse space at this property when the current tenant vacates in 2Q-2017. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of this space. |
(11) | We are unable to provide a meaningful stabilized yield for this completed project as this was a partial repositioning (72,000 RSF) of a larger property. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 21 | ||
Current Year Acquisitions and Dispositions Summary. | ||
(unaudited results, data represents consolidated portfolio only) |
2017 Acquisitions | ||||||||||||||
Acquisition Date | Property Address | County | Submarket | Rentable Square Feet | Acquisition Price ($ in MM) | Occ. % at Acquisition | Occ.% at March 31, 2017 | |||||||
2/17/2017 | 28903 Avenue Paine | Los Angeles | Greater San Fernando Valley | 111,346 | $17.06 | —% | —% |
2017 Dispositions | ||||||||||||||
Disposition Date | Property Address | County | Submarket | Rentable Square Feet | Sale Price ($ in MM) | Reason for Selling | ||||||||
3/31/2017 | 9375 Archibald Avenue | San Bernardino | Inland Empire West | 62,677 | $6.88 | Investor Sale |
First Quarter 2017 Supplemental Financial Reporting Package | Page 22 | ||
Guidance. | ||
METRIC | 2017 GUIDANCE / ASSUMPTIONS |
Core FFO (1) | $0.91 to $0.94 per share (2) |
Same Property Portfolio NOI Growth | 6.0% to 8.0% (3) |
Year-End 2017 Same Property Portfolio Occupancy (4) | 93.0% to 95.0% (5) |
Year-End 2017 Stabilized Same Property Portfolio Occupancy (4) | 96.0% to 98.0% (5) |
General and Administrative Expenses | $20.0 million to $20.5 million (6) |
(1) | Our Core FFO guidance refers only to the Company's in-place portfolio as of March 31, 2017, and does not include any assumptions for acquisitions, dispositions or balance sheet activities that may or may not occur later during the year. |
(2) | The Company does not provide a reconciliation for its guidance range of Core FFO per diluted share to net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, because it is impractical to provide a meaningful or accurate estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income available to common stockholders per diluted share, including, for example, acquisition costs, gains on sales of depreciable real estate and other items that have not yet occurred and are out of the Company’s control. For the same reasons, the Company is unable to address the probable significance of the unavailable information and believes that providing a reconciliation for its guidance range of Core FFO per diluted share would imply a degree of precision as to its forward-looking net income available to common stockholders per diluted share that would be confusing or misleading to investors. |
(3) | Our 2017 guidance for Same Property Portfolio NOI growth includes an estimated $3.4 million impact on NOI from the completion and lease-up of all 2017 Same Property Portfolio properties identified on pages 20-21. |
(4) | Our 2017 Same Property Portfolio is a subset of our consolidated portfolio and consists of 115 properties aggregating 11,584,982 rentable square feet that were wholly-owned by us as of January 1, 2016, and still owned by us as of March 31, 2017. Our 2017 Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude space at seven of our properties aggregating 712,805 rentable square feet that will be in various stages of repositioning (current and future) and lease-up in connection with completed repositioning during 2017. See pages 20-21 for additional details on these seven properties. |
(5) | As of December 31, 2016, the occupancy of our 2017 Same Property Portfolio was 91.88% and the occupancy of our 2017 Stabilized Same Property Portfolio was 96.88%. |
(6) | Our general and administrative expense guidance includes estimated non-cash equity compensation expense of $5.1 million. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 23 | ||
Net Asset Value Components. | ||
At 3/31/2017 | (unaudited and in thousands, except share data) |
Net Operating Income | ||||
ProForma Net Operating Income (NOI)(1) | Three Months Ended March 31, 2017 | |||
Total operating revenues | $ | 35,001 | ||
Property operating expenses | (9,222 | ) | ||
Pro forma effect of uncommenced leases(2) | 50 | |||
Pro forma effect of dispositions(3) | (85 | ) | ||
Pro forma NOI effect of properties and space under repositioning(4) | 4,476 | |||
ProForma NOI | 30,220 | |||
Fair value lease revenue | (117 | ) | ||
Straight line rental revenue adjustment | (956 | ) | ||
ProForma Cash NOI | $ | 29,147 | ||
Balance Sheet Items | ||||
Other assets and liabilities | March 31, 2017 | |||
Cash and cash equivalents | $ | 11,676 | ||
Restricted cash | 6,537 | |||
Notes receivable | 6,090 | |||
Rents and other receivables, net | 2,921 | |||
Other assets | 5,944 | |||
Acquisition related deposits | 500 | |||
Accounts payable, accrued expenses and other liabilities | (18,005 | ) | ||
Dividends payable | (10,008 | ) | ||
Tenant security deposits | (15,311 | ) | ||
Prepaid rents | (4,785 | ) | ||
Total other assets and liabilities | $ | (14,441 | ) | |
Debt and Shares Outstanding | ||||
Total consolidated debt(5) | $ | 512,504 | ||
Preferred stock - liquidation preference | 90,000 | |||
Common shares outstanding(6) | 66,375,624 | |||
Operating partnership units outstanding(7) | 1,989,812 | |||
Total common shares and operating partnership units outstanding | 68,365,436 |
(1) | For a definition and discussion of non-GAAP financial measures, see the notes and definitions section beginning on page 26 of this report. |
(2) | Represents the estimated incremental base rent from uncommenced leases as if they had commenced as of January 1, 2017. |
(3) | Represents the actual Q1’17 NOI for properties sold during the current quarter. See page 22 for a detail of current year disposition properties. |
(4) | Represents the estimated incremental NOI from the properties that were classified as current or future repositioning or lease-up as of March 31, 2017, assuming that all repositioning work had been completed and all of the properties/space were fully stabilized as of January 1, 2017. See pages 20-21 for the properties included. 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 NOI had these properties actually been stabilized as of January 1, 2017. |
(5) | Excludes net deferred loan fees and net loan premium aggregating $2.8 million. |
(6) | Represents outstanding shares of common stock of the Company, which excludes 333,128 shares of unvested restricted stock. |
(7) | Represents outstanding common units of the Company’s operating partnership, Rexford Industrial Realty, L.P., that are owned by unit holders other than Rexford Industrial Realty, Inc. Includes 41,668 vested LTIP Units. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 24 | ||
Fixed Charge Coverage Ratio. | ||
at 3/31/17 | (unaudited and in thousands) |
For the Three Months Ended | |||||||||||||||||||
March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | |||||||||||||||
EBITDA(1) | $ | 23,318 | $ | 26,862 | $ | 20,206 | $ | 29,123 | $ | 15,950 | |||||||||
Cash distributions from unconsolidated joint ventures | — | (8 | ) | (4 | ) | 75 | 74 | ||||||||||||
Fair value lease expense | (117 | ) | (95 | ) | (39 | ) | 60 | (4 | ) | ||||||||||
Non‐cash stock compensation | 1,346 | 956 | 992 | 953 | 934 | ||||||||||||||
Straight line corporate office rent expense adjustment | (36 | ) | (50 | ) | (12 | ) | (11 | ) | (1 | ) | |||||||||
Gains on sale of real estate | (2,668 | ) | (5,814 | ) | — | (11,563 | ) | — | |||||||||||
Loss on extinguishment of debt | 22 | — | — | — | — | ||||||||||||||
Straight line rental revenue adjustment | (956 | ) | (1,095 | ) | (1,395 | ) | (922 | ) | (1,095 | ) | |||||||||
Capitalized payments | (510 | ) | (388 | ) | (400 | ) | (292 | ) | (356 | ) | |||||||||
Recurring capital expenditures | (390 | ) | (667 | ) | (691 | ) | (848 | ) | (586 | ) | |||||||||
2nd generation tenant improvements and leasing commissions | (1,545 | ) | (1,311 | ) | (1,988 | ) | (1,483 | ) | (461 | ) | |||||||||
Unconsolidated joint venture AFFO adjustments | — | — | (2 | ) | (9 | ) | (3 | ) | |||||||||||
Cash flow for fixed charge coverage calculation | 18,464 | 18,390 | 16,667 | 15,083 | 14,452 | ||||||||||||||
Cash interest expense calculation detail: | |||||||||||||||||||
Interest expense | 3,998 | 4,074 | 3,804 | 3,716 | 3,254 | ||||||||||||||
Capitalized interest | 466 | 338 | 433 | 443 | 439 | ||||||||||||||
Note payable premium amortization | 58 | 60 | 60 | 59 | 59 | ||||||||||||||
Amortization of deferred financing costs | (275 | ) | (266 | ) | (263 | ) | (264 | ) | (221 | ) | |||||||||
Cash interest expense | 4,247 | 4,206 | 4,034 | 3,954 | 3,531 | ||||||||||||||
Scheduled principal payments | 301 | 300 | 234 | 102 | 88 | ||||||||||||||
Preferred stock dividends | 1,322 | 1,322 | 661 | — | — | ||||||||||||||
Fixed charges | $ | 5,870 | $ | 5,828 | $ | 4,929 | $ | 4,056 | $ | 3,619 | |||||||||
Fixed Charge Coverage Ratio | 3.1 | x | 3.2 | x | 3.4 | x | 3.7 | x | 4.0 | x |
(1) | For a definition and discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section and reconciliation section beginning on page 26 and page 8 of this report, respectively. |
First Quarter 2017 Supplemental Financial Reporting Package | Page 25 | ||
Notes and Definitions. | ||
Mar 31, 2017 | |||||||||
Covenant | Amended Credit Facility and $225M Term Loan | $100M Senior Notes | Dec 31, 2016 | Sep 30, 2016 | |||||
Maximum Leverage Ratio | less than 60% | 30.9% | 38.4% | 38.1% | 40.2% | ||||
Maximum Secured Leverage Ratio | less than 45% | 4.0% | 4.2% | 4.9% | 5.3% | ||||
Maximum Secured Recourse Debt | less than 15% | —% | —% | —% | —% | ||||
Minimum Tangible Net Worth | $770,506 | $1,075,788 | n/a | n/a | n/a | ||||
Minimum Tangible Net Worth | $789,104 | n/a | $1,075,788 | $1,034,000 | $1,014,321 | ||||
Minimum Fixed Charge Coverage Ratio | at least 1.50 to 1.00 | 3.90 to 1.00 | 3.70 to 1.00 | 3.30 to 1.00 | 3.40 to 1.00 | ||||
Unencumbered Leverage Ratio | less than 60% | 30.1% | 31.9% | 31.2% | 31.7% | ||||
Unencumbered Interest Coverage Ratio | at least 1.75 to 1.00 | 6.75 to 1.00 | 3.44 to 1.00 | 3.58 to 1.00 | 3.41 to 1.00 |
First Quarter 2017 Supplemental Financial Reporting Package | Page 26 | ||
Notes and Definitions. | ||
First Quarter 2017 Supplemental Financial Reporting Package | Page 27 | ||
Notes and Definitions. | ||
Three Months Ended | |||||||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||||||
Net Income | $ | 5,721 | $ | 8,546 | $ | 3,061 | $ | 12,792 | $ | 1,477 | |||||||||
Add: | |||||||||||||||||||
General and administrative | 5,086 | 4,225 | 5,067 | 4,521 | 3,602 | ||||||||||||||
Depreciation and amortization | 13,599 | 14,242 | 13,341 | 12,610 | 11,214 | ||||||||||||||
Acquisition expenses | 385 | 365 | 380 | 635 | 475 | ||||||||||||||
Interest expense | 3,998 | 4,074 | 3,804 | 3,716 | 3,254 | ||||||||||||||
Loss on extinguishment of debt | 22 | — | — | — | — | ||||||||||||||
Subtract: | |||||||||||||||||||
Management, leasing, and development services | 126 | 97 | 131 | 111 | 134 | ||||||||||||||
Interest income | 227 | 231 | 228 | — | — | ||||||||||||||
Equity in income from unconsolidated real estate entities | 11 | — | 1,328 | 62 | 61 | ||||||||||||||
Gains on sale of real estate | 2,668 | 5,814 | — | 11,563 | — | ||||||||||||||
NOI | $ | 25,779 | $ | 25,310 | $ | 23,966 | $ | 22,538 | $ | 19,827 | |||||||||
Net fair value lease revenue (expense) | (117 | ) | (95 | ) | (39 | ) | 60 | (4 | ) | ||||||||||
Straight line rental revenue adjustment | (956 | ) | (1,095 | ) | (1,395 | ) | (922 | ) | (1,095 | ) | |||||||||
Cash NOI | $ | 24,706 | $ | 24,120 | $ | 22,532 | $ | 21,676 | $ | 18,728 |
Three Months Ended March 31, | |||||||||||||
2017 | 2016 | $ Change | % Change | ||||||||||
Same property portfolio cash NOI | $ | 19,968 | 18,141 | ||||||||||
Straight-line rents | 683 | 1,099 | |||||||||||
Amort. above/below market leases | (81 | ) | 6 | ||||||||||
Same property portfolio NOI | $ | 20,570 | $ | 19,246 | $ | 1,324 | 6.9% | ||||||
Non-comparable property operating revenues | 6,866 | 892 | |||||||||||
Non-comparable property expenses | (1,657 | ) | (311 | ) | |||||||||
Total consolidated portfolio NOI | $ | 25,779 | $ | 19,827 | $ | 5,952 | 30.0% | ||||||
Add: | |||||||||||||
Management, leasing and development services | 126 | 134 | |||||||||||
Interest income | 227 | — | |||||||||||
Equity in income from unconsolidated real estate entities | 11 | 61 | |||||||||||
Gains on sale of real estate | 2,668 | — | |||||||||||
Deduct: | |||||||||||||
General and administrative | 5,086 | 3,602 | |||||||||||
Depreciation and amortization | 13,599 | 11,214 | |||||||||||
Acquisition expenses | 385 | 475 | |||||||||||
Interest expense | 3,998 | 3,254 | |||||||||||
Loss on extinguishment of debt | 22 | — | |||||||||||
Net income | $ | 5,721 | $ | 1,477 | $ | 4,244 | 287.3% |
First Quarter 2017 Supplemental Financial Reporting Package | Page 28 | ||