SEC Filing | Rexford Industrial Realty, Inc.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

April 30, 2019

REXFORD INDUSTRIAL REALTY, INC.

(Exact name of registrant as specified in its charter)



Maryland	001-36008	46-2024407
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)



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

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

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 30, 2019, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended March 31, 2019, and distributed certain supplemental financial information. On April 30, 2019, Rexford Industrial also posted the supplemental financial information on its website located at www.rexfordindustrial.com. Copies of the press release and supplemental financial information are furnished herewith as Exhibits 99.1 and 99.2, respectively.

The information included in this Current Report on Form 8-K under this Item 2.02 (including Exhibits 99.1 and 99.2 hereto) are being “furnished” and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of the Exchange Act, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 7.01 REGULATION FD DISCLOSURE

As discussed in Item 2.02 above, Rexford Industrial issued a press release announcing its earnings for the quarter ended March 31, 2019 and distributed certain supplemental information. On April 30, 2019, Rexford Industrial also posted the supplemental financial information on its website located at www.rexfordindustrial.com.

The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed to be “filed” for the purposes of the Exchange Act, or otherwise subject to the liabilities of the Exchange Act, nor shall it be incorporated by reference into a filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1 and 99.2 hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.



Exhibit Number		Description
99.1		Press Release Dated April 30, 2019

99.2		First Quarter 2019 Supplemental Financial Report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	Rexford Industrial Realty, Inc.
April 30, 2019	/s/ Michael S. Frankel
	Michael S. Frankel Co-Chief Executive Officer (Principal Executive Officer)

	Rexford Industrial Realty, Inc.
April 30, 2019	/s/ Howard Schwimmer
	Howard Schwimmer Co-Chief Executive Officer (Principal Executive Officer)

EXHIBIT INDEX



Exhibit Number		Description
99.1		Press Release Dated April 30, 2019

99.2		First Quarter 2019 Supplemental Financial Report

Exhibit

Exhibit 99.1

https://cdn.kscope.io/e2ce6221286b4874eabc1b9b12f2f4f8-rexrlogoa52.jpg

REXFORD INDUSTRIAL ANNOUNCES FIRST QUARTER 2019 FINANCIAL RESULTS

- 1Q 2019 Net Income Attributable to Common Stockholders of $8.0M, or $0.08 per Diluted Share -

- 1Q 2019 Company Share of Core FFO of $29.4M, Up 37.2% Compared to 1Q 2018 -

- 1Q 2019 Company Share of Core FFO of $0.30 per Diluted Share, Up 11.1% Compared to 1Q 2018 -

- 1Q 2019 Same Property Portfolio NOI Up 7.8% Compared to 1Q 2018 -

- 1Q 2019 GAAP Releasing Spreads of 26.2% and Cash Releasing Spreads of 17.3% -

- Stabilized Same Property Portfolio Ending Occupancy of 97.9% -

- Quarterly Dividend Increased by 15.6% to $0.185 per Share -

Los Angeles, California - April 30, 2019 - Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust (“REIT”) that specializes in acquiring, owning and operating industrial properties located in Southern California infill markets, today announced financial results for the first quarter of 2019.

First Quarter 2019 Financial and Operational Highlights:


•	Net income attributable to common stockholders of $0.08 per diluted share for the quarter ended March 31, 2019, compared to $0.15 per diluted share for the first quarter of last year.


•	Company share of Core FFO increased 37.2% year-over-year to $29.4 million for the quarter ended March 31, 2019.


•	Company share of Core FFO per diluted share increased 11.1% year-over-year to $0.30 per diluted share for the quarter ended March 31, 2019.


•	Total first quarter rental revenues of $59.6 million, which represents an increase of 23.1% year-over-year.


•	Consolidated first quarter Portfolio Net Operating Income (NOI) of $45.8 million, which represents an increase of 25.6% year-over-year.


•	Same Property Portfolio NOI increased 7.8% in the first quarter of 2019 compared to the first quarter of 2018, driven by a 6.0% increase in Same Property Portfolio total rental revenue and a 0.5% increase in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 10.1% compared to the first quarter of 2018.


•	Stabilized Same Property Portfolio NOI increased 4.5% in the first quarter of 2019 compared to the first quarter of 2018.


•	Stabilized Same Property Portfolio Cash NOI increased 7.6% in the first quarter of 2019 compared to the first quarter of 2018.


•	Signed new and renewal leases totaling 1,131,883 rentable square feet. Rental rates on new and renewal leases were 26.2% higher than prior rents on a GAAP basis and 17.3% higher on a cash basis.


•	At March 31, 2019, the Stabilized Same Property Portfolio occupancy was 97.9% and the Same Property Portfolio occupancy, inclusive of assets in value-add repositioning, was 96.8%.


•	At March 31, 2019, the consolidated portfolio, including repositioning assets, was 94.8% leased and 94.6% occupied and the consolidated portfolio, excluding repositioning assets aggregating approximately 0.7 million rentable square feet, was 98.0% leased and 97.8% occupied.


•	During the first quarter, the Company increased its quarterly dividend by 15.6% to $0.185 per Share.


•	The Company ended the quarter with low leverage measured by a debt-to-enterprise value ratio of 10.9%.


•	During the first quarter of 2019, the Company acquired five industrial properties for an aggregate purchase price of $146.0 million, with 16 industrial properties acquired year-to-date for an aggregate purchase price of $398.0 million.

“Our strong first quarter 2019 results demonstrate the Rexford team’s ability to consistently execute on our unique growth and value creation opportunity within the infill Southern California industrial market, with Core FFO growth of 37.2%, and 11.1% on a per share basis,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “The attractive supply and demand characteristics in our region, combined with our first-class leasing platform, allow us to drive attractive portfolio NOI growth, which was 25.6% for the first quarter. Our stabilized consolidated portfolio occupancy reached 97.8%, with Same Property NOI growth of 7.8% on a GAAP basis and 10.1% on a cash basis. We completed $146 million of acquisitions during the quarter, plus an additional $252.0 million of acquisitions completed since the end of the first quarter. With 100% of our investments located in prime, high-demand infill Southern California locations, we are pleased at their quality and potential for further value creation. We closed the quarter with a low-leverage balance sheet measured by Company debt-to-enterprise value of about 10.9%, providing us plenty of dry powder as we continue to grow both externally through acquisitions and internally as we capitalize upon the value creation opportunities within our existing portfolio. Finally, during the quarter, we increased our dividend by 15.6%, reflecting the accretive nature of our historical and ongoing growth opportunities.”

Financial Results:

The Company reported net income attributable to common stockholders of $8.0 million, or $0.08 per diluted share, for the three months ended March 31, 2019, as compared to net income attributable to common stockholders of $12.2 million, or $0.15 per diluted share, for the three months ended March 31, 2018.

The Company reported Company share of Core FFO of $29.4 million, or $0.30 per diluted share of common stock, for the three months ended March 31, 2019, as compared to Company share of Core FFO of $21.4 million, or $0.27 per diluted share of common stock, for the three months ended March 31, 2018. Amounts are adjusted for non-core expenses ($23,000 reported during the first quarter of 2019 and $9,000 reported during the first quarter of 2018).

For the three months ended March 31, 2019, the Company’s Same Property Portfolio NOI increased 7.8% compared to the first quarter of 2018, driven by a 6.0% increase in Same Property Portfolio total rental revenue and a 0.5% increase in Same Property Portfolio expenses. Same Property Portfolio Cash NOI increased 10.1% compared to the first quarter of 2018. Stabilized Same Property Portfolio NOI increased 4.5% in the first quarter of 2019 compared to the first quarter of 2018 and Stabilized Same Property Portfolio Cash NOI increased 7.6% in the first quarter of 2019 compared to the first quarter of 2018.

Operating Results:

During the first quarter of 2019, the Company signed 103 new and renewal leases totaling 1,131,883 rentable square feet. Average rental rates on comparable new and renewal leases were up 26.2% on a GAAP basis and up 17.3% on a cash basis. The Company signed 51 new leases for 527,869 rentable square feet, with GAAP rents up 36.5% compared to the prior in-place leases. The Company signed 52 renewal leases for 604,014 rentable square feet, with GAAP rents up 22.0% compared to the prior in-place leases. For the 51 new leases, cash rents increased 26.4%, and for the 52 renewal leases, cash rents were up 13.5%, compared to the ending cash rents for the prior leases.

The Company has included in a supplemental information package the detailed results and operating statistics that reflect the activities of the Company for the three months ended March 31, 2019. See below for information regarding the supplemental information package.

Transaction Activity:

In the first quarter 2019, the Company completed five acquisitions, for an aggregate purchase price of $146.0 million, as detailed below.

In January 2019, the Company acquired 12821 Knott Street, a vacant single-tenant industrial building containing 120,800 square feet on 6.97 acres of land, located in the West Orange County submarket, for $19.8 million or $164 per square foot.

In January 2019, the Company acquired 28510 Industry Drive, a 100% leased single-tenant industrial building containing 46,778 square feet on 2.15 acres of land, located in the Greater San Fernando Valley submarket, for $7.8 million or $166 per square foot.

In January 2019, the Company acquired Conejo Spectrum Business Park, a 72% leased nine-building industrial complex containing 531,378 square feet on 28.05 acres of land, located in the Ventura County submarket, for $106.3 million or $200 per square foot.

In March 2019, the Company acquired 2455 Ash Street, a 100% leased single-tenant industrial building containing 42,508 square feet on 3.45 acres of land, located in the North San Diego County submarket, for $6.7 million or $157 per square foot.

In March 2019, the Company acquired 25413 Rye Canyon Road, a 40% leased single-tenant industrial building containing 48,075 square feet on 2.60 acres of land, located in the Greater San Fernando Valley submarket, for $5.5 million or $115 per square foot.

Subsequent to the first quarter 2019, the Company completed eleven acquisitions, for an aggregate purchase price of $252.0 million.

Balance Sheet:

During the quarter ended March 31, 2019, the Company issued 7,148,746 shares of common stock under its at-the-market equity offering program (ATM program). The shares were issued at a weighted average price of $34.75 per share, providing gross proceeds of approximately $248.4 million and net proceeds of approximately $244.7 million. As of March 31, 2019, the current ATM program had approximately $201.6 million of remaining capacity.

As of March 31, 2019, the Company had $761.1 million of outstanding debt, with an average interest rate of 3.49% and an average term-to-maturity of 5.3 years. As of March 31, 2019, $552.6 million, or 73%, of the Company’s outstanding debt was fixed-rate with an average interest rate of 3.27% and an average term-to-maturity of 5.1 years. The remaining $208.5 million, or 27%, of the Company’s outstanding debt was floating-rate, with an average interest rate of LIBOR + 1.56% and an average term-to-maturity of 5.6 years. During the fourth quarter of 2018, the Company executed an interest rate swap to hedge $150 million of its remaining floating-rate debt beginning in July 2019 when the swap becomes effective. If this interest rate swap was effective as of March 31, 2019, the Company’s debt would be 92% fixed.

Guidance

The Company is reiterating and increasing its full year 2019 guidance as follows:


•	Net income attributable to common stockholders within a range of $0.30 to $0.32 per diluted share


•	Company share of Core FFO within a range of $1.18 to $1.20 per diluted share


•	Year-end Same Property Portfolio occupancy within a range of 95.5% to 96.5%


•	Year-end Stabilized Same Property Portfolio occupancy within a range of 96.5% to 97.5%


•	Same Property Portfolio NOI growth for the year of 4.5% to 6.0%


•	Stabilized Same Property Portfolio NOI growth for the year of 3.5% to 4.0%


•	General and administrative expenses of $29.0 million to $30.0 million

The Core FFO guidance refers only to the Company’s in-place portfolio as of April 30, 2019, and does not include any assumptions for acquisitions, dispositions or balance sheet activities that may or may not occur later during the year. The Company’s in-place portfolio as of April 30, 2019, reflects the acquisition of eleven properties containing 1,437,716 rentable square feet that occurred subsequent to March 31, 2019. A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, interest rates, the economy, the supply and demand of industrial real estate, the availability and terms of financing to the Company or to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.

Dividends:

On April 30, 2019, the Company’s Board of Directors declared a dividend in the amount of $0.185 per share for the second quarter of 2019, payable in cash on July 15, 2019, to common stockholders and common unit holders of record as of June 28, 2019.

On April 30, 2019, the Company’s Board of Directors declared a dividend of $0.367188 per share of its Series A Cumulative Redeemable Preferred Stock and $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock, in each case, payable in cash on June 28, 2019, to preferred stockholders of record as of June 14, 2019.

Supplemental Information:

Details regarding these results can be found in the Company’s supplemental financial package available on the Company’s investor relations website at www.ir.rexfordindustrial.com.

Earnings Release, Investor Conference Webcast and Conference Call:

The Company will host a webcast and conference call on Wednesday, May 1, 2019, at 1:00 p.m. Eastern Time to review first quarter results and discuss recent events. The live webcast will be available on the Company’s investor relations website at ir.rexfordindustrial.com. To participate in the call, please dial 877-407-0789 (domestic) or 201-689-8562 (international). A replay of the conference call will be available through June 1, 2019, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13690002.

About Rexford Industrial:

Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 192 properties with approximately 23.6 million rentable square feet and manages an additional 19 properties with approximately 1.0 million rentable square feet.

For additional information, visit www.rexfordindustrial.com.

Forward Looking Statements:

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent filings with the Securities and Exchange Commission. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Definitions / Discussion of Non-GAAP Financial Measures:

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

Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO to exclude the impact of certain items that we do not consider reflective of our core revenue or expense streams. These adjustments consist of acquisition expenses. Management believes that Core FFO is a useful supplemental measure as it provides a more meaningful and consistent comparison of operating performance and allows investors to more easily compare the Company’s operating results. Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may not calculate Core FFO in a consistent manner. Accordingly, our Core FFO may not be comparable to other REITs’ Core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance. A reconciliation of FFO to Core FFO is set forth below.

Reconciliation of Net Income Attributable to Common Stockholders per Diluted Share Guidance to Company share of Core FFO per Diluted Share Guidance: The following is a reconciliation of the Company’s 2019 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Company share of Core FFO per diluted share.



	2019 Estimate
	Low		High
Net income attributable to common stockholders	$	0.30	$	0.32
Company share of depreciation and amortization	$	0.88	$	0.88
Company share of Core FFO	$	1.18	$	1.20

Net Operating Income (NOI): NOI is a non-GAAP measure, which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as rental income from real estate operations less property expenses (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense and gains (or losses) from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have a real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs’ NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of

our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs.

NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio and Stabilized Same Property Portfolio. A calculation of NOI for our Same Property Portfolio, as well as a reconciliation of net income to NOI for our Same Property Portfolio and Stabilized Same Property Portfolio, is set forth below.

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

Same Property Portfolio: Our Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly-owned by us as of January 1, 2018, and still owned by us as of March 31, 2019. Therefore, we excluded from our Same Property Portfolio any properties that were acquired or sold during the period from January 1, 2018 through March 31, 2019. The Company’s computation of same property performance may not be comparable to other REITs.

Stabilized Same Property Portfolio occupancy/leasing statistics excludes vacant/unleased repositioning space at each of these properties as of the end of each reporting period. Stabilized Same Property Portfolio NOI excludes the NOI for the entire property for all comparable periods.

Our Stabilized Same Property Portfolio excludes the following Same Property Portfolio properties that were in various stages of repositioning or lease-up during the year ended December 31, 2018 and the three months ended March 31, 2019:



14742-14750 Nelson Avenue		301-445 Figueroa Street
15401 Figueroa Street		3233 Mission Oaks Boulevard
1601 Alton Parkway		7110 E. Rosecrans Avenue
2700-2722 Fairview Street		9615 Norwalk Boulevard
28903 Avenue Paine

As of March 31, 2019, the difference between our Same Property Portfolio and our Stabilized Same Property Portfolio is 203,931 rentable square feet of space at three of our properties that were classified as repositioning or lease-up.

As of March 31, 2018, the difference between our Same Property Portfolio and our Stabilized Same Property Portfolio is space aggregating 487,731 rentable square feet at six of our properties that were in various stages of repositioning or lease-up.

Properties and Space Under Repositioning: Typically defined as properties or units where a significant amount of space is held vacant in order to implement capital improvements that improve the functionality (not including basic refurbishments, i.e., paint and carpet), cash flow and value of that space. We define a significant amount of space in a building as the lower of (i) 20,000 square feet of space or (ii) 50% of a building’s square footage. Typically, we would include properties or space where the repositioning and lease-up time frame is estimated to be greater than six months. A repositioning is considered complete once the investment is fully or nearly fully deployed and the property is marketable for leasing. We consider a repositioning property to be stabilized at the earlier of the following: (i) upon reaching 90% occupancy or (ii) one year from the date of completion of repositioning construction work.

Contact:

Investor Relations:

Stephen Swett

424-256-2153 ext 401

investorrelations@rexfordindustrial.com

Rexford Industrial Realty, Inc.

Consolidated Balance Sheets

(In thousands except share data)



	March 31, 2019			December 31, 2018
	(unaudited)
ASSETS
Land	$	1,364,738		$	1,298,957
Buildings and improvements	1,422,684			1,332,438
Tenant improvements	62,908			60,024
Furniture, fixtures, and equipment	149			149
Construction in progress	20,331			24,515
Total real estate held for investment	2,870,810			2,716,083
Accumulated depreciation	(245,033		)	(228,742		)
Investments in real estate, net	2,625,777			2,487,341
Cash and cash equivalents	276,575			180,601
Rents and other receivables, net	4,548			4,944
Deferred rent receivable, net	24,290			22,228
Deferred leasing costs, net	14,139			14,002
Deferred loan costs, net	1,158			1,312
Acquired lease intangible assets, net	56,122			55,683
Acquired indefinite-lived intangible	5,156			5,156
Interest rate swap asset	5,896			8,770
Other assets	12,580			6,723
Acquisition related deposits	10,875			925
Total Assets	$	3,037,116		$	2,787,685
LIABILITIES & EQUITY
Liabilities
Notes payable	$	757,524		$	757,371
Interest rate swap liability	4,604			2,351
Accounts payable, accrued expenses and other liabilities	33,728			21,074
Dividends payable	19,774			15,938
Acquired lease intangible liabilities, net	52,426			52,727
Tenant security deposits	24,396			23,262
Prepaid rents	6,828			6,539
Total Liabilities	899,280			879,262
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, 3,600,000 shares outstanding as of March 31, 2019 and December 31, 2018 ($90,000 liquidation preference)	86,651			86,651
5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding as of March 31, 2019 and December 31, 2018 ($75,000 liquidation preference)	72,443			72,443
Common Stock, $0.01 par value 490,000,000 shares authorized and 104,028,046 and 96,810,504 shares outstanding as of March 31, 2019 and December 31, 2018, respectively	1,038			966
Additional paid in capital	2,042,218			1,798,113
Cumulative distributions in excess of earnings	(99,715		)	(88,341		)
Accumulated other comprehensive income	1,261			6,262
Total stockholders’ equity	2,103,896			1,876,094
Noncontrolling interests	33,940			32,329
Total Equity	2,137,836			1,908,423
Total Liabilities and Equity	$	3,037,116		$	2,787,685

Rexford Industrial Realty, Inc.

Consolidated Statements of Operations

(Unaudited and in thousands, except per share data)



	Three Months Ended March 31,
	2019			2018
REVENUES
Rental income	59,604			48,433
Management, leasing and development services	102			103
Interest income	657			—
TOTAL REVENUES	60,363			48,536
OPERATING EXPENSES
Property expenses	13,812			11,960
General and administrative	7,344			6,162
Depreciation and amortization	21,996			19,452
TOTAL OPERATING EXPENSES	43,152			37,574
OTHER EXPENSES
Acquisition expenses	23			9
Interest expense	6,471			5,852
TOTAL EXPENSES	49,646			43,435
Gains on sale of real estate	—			9,983
NET INCOME	10,717			15,084
Less: net income attributable to noncontrolling interest	(201		)	(318		)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.	10,516			14,766
Less: preferred stock dividends	(2,423		)	(2,423		)
Less: earnings attributable to participating securities	(114		)	(97		)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	7,979		$	12,246
Net income attributable to common stockholders per share – basic	$	0.08		$	0.16
Net income attributable to common stockholders per share – diluted	$	0.08		$	0.15
Weighted-average shares of common stock outstanding – basic	98,343			78,694
Weighted-average shares of common stock outstanding – diluted	98,608			79,196

Rexford Industrial Realty, Inc.

Same Property Portfolio Occupancy and NOI and Cash NOI

(Unaudited, dollars in thousands)



Same Property Portfolio Occupancy:

	March 31, 2019		March 31, 2018		Change (basis points)
	Same Property Portfolio	Stabilized Same Property Portfolio⁽¹⁾	Same Property Portfolio	Stabilized Same Property Portfolio⁽²⁾	Same Property Portfolio	Stabilized Same Property Portfolio
Occupancy:
Los Angeles County	97.9%	98.3%	96.0%	99.4%	190 bps	(110) bps
Orange County	95.2%	97.5%	94.1%	97.1%	110 bps	40 bps
San Bernardino County	97.2%	97.2%	98.7%	98.7%	(150) bps	(150) bps
San Diego County	98.4%	98.4%	95.8%	95.8%	260 bps	260 bps
Ventura County	90.6%	96.6%	87.1%	93.1%	350 bps	350 bps
Total/Weighted Average	96.8%	97.9%	95.4%	98.0%	140 bps	(10) bps


(1)	Reflects the occupancy of our Same Property Portfolio as of March 31, 2019, adjusted for total space of 203,931 rentable square feet at three properties that were in various stages of repositioning or lease-up as of March 31, 2019.


(2)	Reflects the occupancy of our Same Property Portfolio as of March 31, 2018, adjusted for space aggregating 487,731 rentable square feet at six properties that were in various stages of repositioning or lease-up as of March 31, 2018.



Same Property Portfolio NOI and Cash NOI

	Three Months Ended March 31,
	2019			2018			$ Change		% Change
Rental income	50,555			47,711			2,844		6.0%
Property expenses	11,818			11,764			54		0.5%
Same Property Portfolio NOI	$	38,737		$	35,947		$	2,790	7.8%
Straight line rental revenue adjustment	(1,471		)	(1,947		)	476		(24.4)%
Amortization of above/below market lease intangibles	(1,007		)	(1,075		)	68		(6.3)%
Same Property Portfolio Cash NOI	$	36,259		$	32,925		$	3,334	10.1%

Rexford Industrial Realty, Inc.

Reconciliation of Net Income to NOI, Same Property Portfolio NOI, Same Property Portfolio Cash NOI, Stabilized Same Property Portfolio NOI and Stabilized Same Property Portfolio Cash NOI

(Unaudited and in thousands)



	Three Months Ended March 31,
	2019			2018
Net income	$	10,717		$	15,084
Add:
General and administrative	7,344			6,162
Depreciation and amortization	21,996			19,452
Acquisition expenses	23			9
Interest expense	6,471			5,852
Deduct:
Management, leasing and development services	102			103
Interest income	657			—
Gains on sale of real estate	—			9,983
Net operating income (NOI)	$	45,792		$	36,473
Non-Same Property Portfolio rental income	(9,049		)	(722		)
Non-Same Property Portfolio property expenses	1,994			196
Same Property Portfolio NOI	$	38,737		$	35,947
Straight line rental revenue adjustment	(1,471		)	(1,947		)
Amortization of above/below market lease intangibles	(1,007		)	(1,075		)
Same Property Portfolio Cash NOI	$	36,259		$	32,925

NOI (from above)	$	45,792		$	36,473
Non-Stabilized Same Property Portfolio rental income	(11,926		)	(2,181		)
Non-Stabilized Same Property Portfolio property expenses	2,669			672
Stabilized Same Property Portfolio NOI	$	36,535		$	34,964
Straight line rental revenue adjustment	(1,108		)	(1,828		)
Amortization of above/below market lease intangibles	(1,015		)	(1,162		)
Stabilized Same Property Portfolio Cash NOI	$	34,412		$	31,974

Rexford Industrial Realty, Inc.

Reconciliation of Net Income to Funds From Operations and Core Funds From Operations

(Unaudited and in thousands, except per share data)



	Three Months Ended March 31,
	2019			2018
Net income	$	10,717		$	15,084
Add:
Depreciation and amortization	21,996			19,452
Deduct:
Gains on sale of real estate	—			9,983
Funds From Operations (FFO)	$	32,713		$	24,553
Less: preferred stock dividends	(2,423		)	(2,423		)
Less: FFO attributable to noncontrolling interest⁽¹⁾	(733		)	(557		)
Less: FFO attributable to participating securities⁽²⁾	(176		)	(158		)
Company share of FFO	$	29,381		$	21,415

Company Share of FFO per common share - basic	$	0.30		$	0.27
Company Share of FFO per common share - diluted	$	0.30		$	0.27

FFO	$	32,713		$	24,553
Adjust:
Acquisition expenses	23			9
Core FFO	$	32,736		$	24,562
Less: preferred stock dividends	(2,423		)	(2,423		)
Less: Core FFO attributable to noncontrolling interest⁽¹⁾	(733		)	(557		)
Less: Core FFO attributable to participating securities⁽²⁾	(176		)	(158		)
Company share of Core FFO	$	29,404		$	21,424

Company share of Core FFO per common share - basic	$	0.30		$	0.27
Company share of Core FFO per common share - diluted	$	0.30		$	0.27

Weighted-average shares of common stock outstanding – basic	98,343			78,694
Weighted-average shares of common stock outstanding – diluted	98,608			79,196


(1)	Noncontrolling interest represent holders of outstanding common units of the Company’s operating partnership that are owned by unit holders other than the Company.


(2)	Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.

Exhibit

Exhibit 99.2

https://cdn.kscope.io/e2ce6221286b4874eabc1b9b12f2f4f8-q119covera01.jpg



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 Statements 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
Notes and Definitions	25-28

Disclosures:

Forward Looking Statements: This supplemental package contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on management’s beliefs and assumptions and information currently available to management. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the market value of our properties, the inability to enter into or renew leases at favorable rates, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); risks associated with the disruption of credit markets or a global economic slowdown; risks associated with the potential loss of key personnel (most importantly, members of senior management); risks associated with our failure to maintain our status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; litigation, including costs associated with prosecuting or defending pending or threatened claims and any adverse outcomes, and potential liability for uninsured losses and environmental contamination.

For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements, see Item 1A. Risk Factors in our 2018 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 19, 2019. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.



	First Quarter 2019 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
Diana J. Ingram		Director
Tyler H. Rose		Director
Peter Schwab		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	Chris Lucas	(571) 633-8151
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	Chris Testa	(212) 417-8127
Stifel Nicolaus & Co.	John W. Guinee	(443) 224-1307
Wells Fargo Securities	Blaine Heck	(443) 263-6529

Disclaimer: This list may not be complete and is subject to change as firms add or delete coverage of our company. Please note that any opinions, estimates, forecasts or predictions regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Rexford Industrial Realty, Inc. or its management. We are providing this listing as a service to our stockholders and do not by listing these firms imply our endorsement of, or concurrence with, such information, conclusions or recommendations. Interested persons may obtain copies of analysts’ reports on their own; we do not distribute these reports.



	First Quarter 2019 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, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Financial Results:
Total rental revenues	$	59,604		$	56,125		$	54,469		$	51,616		$	48,433
Net income	$	10,717		$	15,207		$	8,965		$	7,819		$	15,084
Net Operating Income (NOI)	$	45,792		$	42,483		$	41,175		$	38,841		$	36,473
Company share of Core FFO	$	29,404		$	27,216		$	26,050		$	22,882		$	21,424
Company share of Core FFO per common share - diluted	$	0.30		$	0.29		$	0.28		$	0.27		$	0.27
Adjusted EBITDA	$	42,164		$	40,348		$	38,003		$	36,784		$	32,306
Dividend declared per common share	$	0.185		$	0.160		$	0.160		$	0.160		$	0.160
Portfolio Statistics:
Portfolio SF - consolidated	22,144,631			21,295,443			20,505,157			20,213,729			18,741,304
Ending occupancy - consolidated portfolio	94.6		%	95.4		%	95.1		%	95.2		%	95.2		%
Stabilized occupancy - consolidated portfolio	97.8		%	97.5		%	97.6		%	98.1		%	97.7		%
Leasing spreads - GAAP	26.2		%	25.1		%	32.2		%	35.5		%	25.3		%
Leasing spreads - cash	17.3		%	14.8		%	21.1		%	23.9		%	14.9		%
Same Property Performance:
Same Property Portfolio SF	18,314,542			18,314,542			18,314,542			18,314,542			18,314,542
Same Property Portfolio ending occupancy	96.8		%	96.0		%	95.6		%	95.3		%	95.4		%
Same Property Portfolio NOI growth	7.8		%	n/a			n/a			n/a			n/a
Same Property Portfolio Cash NOI growth	10.1		%	n/a			n/a			n/a			n/a
Stabilized Same Property Portfolio ending occupancy	97.9		%	97.3		%	97.6		%	98.0		%	98.0		%
Stabilized Same Property Portfolio NOI growth	4.5		%	n/a			n/a			n/a			n/a
Stabilized Same Property Portfolio Cash NOI growth	7.6		%	n/a			n/a			n/a			n/a
Capitalization:
Common stock price at quarter end	$	35.81		$	29.47		$	31.96		$	31.39		$	28.79
Common shares issued and outstanding	103,804,570			96,610,106			92,497,666			90,848,198			80,441,338
Total shares and units issued and outstanding at period end ⁽²⁾	106,267,799			99,025,917			94,500,770			92,861,762			82,482,513
Weighted average shares outstanding - diluted	98,607,786			94,487,773			91,945,206			83,494,825			79,196,060
5.875% Series A and Series B Cumulative Redeemable Preferred Stock	$	165,000		$	165,000		$	165,000		$	165,000		$	165,000
Total equity market capitalization	$	3,970,450		$	3,083,294		$	3,185,245		$	3,079,931		$	2,539,672
Total consolidated debt	$	761,077		$	761,116		$	761,154		$	761,192		$	662,425
Total combined market capitalization (net debt plus equity)	$	4,454,952		$	3,663,809		$	3,762,495		$	3,678,419		$	3,186,472
Ratios:
Net debt to total combined market capitalization	10.9		%	15.8		%	15.3		%	16.3		%	20.3		%
Net debt to Adjusted EBITDA (quarterly results annualized)	2.9x			3.6x			3.8x			4.1x			5.0x


(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 25 and page 8 of this report, respectively.

(2)

Includes the following number of OP Units and vested LTIP units held by noncontrolling interests: 2,463,229 (March 31, 2019), 2,415,811 (December 31, 2018), 2,003,104 (September 30, 2018), 2,013,564 (June 30, 2018) and 2,041,175 (March 31, 2018). Excludes the following number of shares of unvested restricted stock: 223,476 (March 31, 2019), 200,398 (December 31, 2018), 209,214 (September 30, 2018), 213,867 (June 30, 2018) and 226,451 (March 31, 2018). Excludes unvested LTIP units and unvested performance units.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 4



Consolidated Balance Sheets.
		(unaudited and in thousands)



	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
ASSETS
Land	$	1,364,738		$	1,298,957		$	1,218,386		$	1,199,633		$	1,020,652
Buildings and improvements	1,422,684			1,332,438			1,253,935			1,229,100			1,098,695
Tenant improvements	62,908			60,024			54,808			53,531			50,998
Furniture, fixtures, and equipment	149			149			151			151			151
Construction in progress	20,331			24,515			50,367			44,631			45,688
Total real estate held for investment	2,870,810			2,716,083			2,577,647			2,527,046			2,216,184
Accumulated depreciation	(245,033		)	(228,742		)	(214,680		)	(200,006		)	(186,234		)
Investments in real estate, net	2,625,777			2,487,341			2,362,967			2,327,040			2,029,950
Cash and cash equivalents	276,575			180,601			183,904			162,704			15,625
Restricted cash	—			—			—			—			4,211
Rents and other receivables, net	4,548			4,944			5,042			3,920			3,328
Deferred rent receivable, net	24,290			22,228			20,770			19,432			17,766
Deferred leasing costs, net	14,139			14,002			13,446			12,600			12,097
Deferred loan costs, net	1,158			1,312			1,467			1,621			1,775
Acquired lease intangible assets, net⁽¹⁾	56,122			55,683			53,402			57,054			45,876
Acquired indefinite-lived intangible	5,156			5,156			5,156			5,156			5,156
Interest rate swap asset	5,896			8,770			13,851			13,036			11,294
Other assets⁽²⁾	12,580			6,723			7,508			8,216			5,961
Acquisition related deposits	10,875			925			1,325			1,600			4,525
Assets associated with real estate held for sale, net⁽³⁾	—			—			—			—			8,300
Total Assets	$	3,037,116		$	2,787,685		$	2,668,838		$	2,612,379		$	2,165,864
LIABILITIES & EQUITY
Liabilities
Notes payable	$	757,524		$	757,371		$	757,218		$	757,064		$	659,417
Interest rate swap liability	4,604			2,351			—			—			—
Accounts payable, accrued expenses and other liabilities⁽²⁾	33,728			21,074			30,411			19,683			21,441
Dividends payable	19,774			15,938			15,214			14,952			13,294
Acquired lease intangible liabilities, net⁽⁴⁾	52,426			52,727			52,289			53,939			17,783
Tenant security deposits	24,396			23,262			21,888			20,534			19,936
Prepaid rents	6,828			6,539			6,424			6,374			5,540
Liabilities associated with real estate held for sale⁽³⁾	—			—			—			—			132
Total Liabilities	899,280			879,262			883,444			872,546			737,543
Equity
Series A preferred stock, net ($90,000 liquidation preference)	86,651			86,651			86,651			86,651			86,651
Series B preferred stock, net ($75,000 liquidation preference)	72,443			72,443			72,443			72,443			72,443
Common stock	1,038			966			924			908			804
Additional paid in capital	2,042,218			1,798,113			1,666,339			1,614,650			1,297,391
Cumulative distributions in excess of earnings	(99,715		)	(88,341		)	(85,358		)	(76,926		)	(67,622		)
Accumulated other comprehensive income	1,261			6,262			13,558			12,753			11,014
Total stockholders’ equity	2,103,896			1,876,094			1,754,557			1,710,479			1,400,681
Noncontrolling interests	33,940			32,329			30,837			29,354			27,640
Total Equity	2,137,836			1,908,423			1,785,394			1,739,833			1,428,321
Total Liabilities and Equity	$	3,037,116		$	2,787,685		$	2,668,838		$	2,612,379		$	2,165,864


(1)	Includes net above-market tenant lease intangibles of $5,410 (March 31, 2019), $4,647 (December 31, 2018), $4,453 (September 30, 2018), $4,692 (June 30, 2018) and $4,899 (March 31, 2018).


(2)	In connection with the adoption of Financial Accounting Standards Board Topic 842 - Leases on January 1, 2019, we recognized operating lease right-of-use assets and lease liabilities related to our ground and office leases. As of March 31, 2019, we have operating lease right-of-use assets and lease liabilities of of $6.5 million and $6.8 million, respectively.


(3)	At March 31, 2018, the properties located at 1910 Archibald Avenue and 1920 Archibald Avenue were classified as held for sale.


(4)	Includes net below-market tenant lease intangibles of $52,426 (March 31, 2019), $52,610 (December 31, 2018), $52,164 (September 30, 2018), $53,806 (June 30, 2018) and $17,642 (March 31, 2018).



	First Quarter 2019 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, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Revenues
Rental income	59,604			56,125			54,469			51,616			48,433
Management, leasing, and development services	102			114			116			140			103
Interest income	657			769			609			—			—
Total Revenues	60,363			57,008			55,194			51,756			48,536
Operating Expenses
Property expenses	13,812			13,642			13,294			12,775			11,960
General and administrative⁽²⁾	7,344			6,297			6,229			6,506			6,162
Depreciation and amortization	21,996			20,671			20,144			19,775			19,452
Total Operating Expenses	43,152			40,610			39,667			39,056			37,574
Other Expenses
Acquisition expenses	23			166			106			37			9
Interest expense	6,471			6,656			6,456			6,452			5,852
Total Expenses	49,646			47,432			46,229			45,545			43,435
Gains on sale of real estate	—			5,631			—			1,608			9,983
Net Income	10,717			15,207			8,965			7,819			15,084
Less: net income attributable to noncontrolling interest	(201		)	(277		)	(141		)	(129		)	(318		)
Net income attributable to Rexford Industrial Realty, Inc.	10,516			14,930			8,824			7,690			14,766
Less: preferred stock dividends	(2,423		)	(2,424		)	(2,423		)	(2,424		)	(2,423		)
Less: earnings allocated to participating securities	(114		)	(93		)	(94		)	(94		)	(97		)
Net income attributable to common stockholders	$	7,979		$	12,413		$	6,307		$	5,172		$	12,246

Earnings per Common Share
Net income attributable to common stockholders per share - basic	$	0.08		$	0.13		$	0.07		$	0.06		$	0.16
Net income attributable to common stockholders per share - diluted	$	0.08		$	0.13		$	0.07		$	0.06		$	0.15

Weighted average shares outstanding - basic	98,342,677			93,995,846			91,463,594			82,924,208			78,694,161
Weighted average shares outstanding - diluted	98,607,786			94,487,773			91,945,206			83,494,825			79,196,060


(1)	See footnote (1) on the next page (pg 7) for details related to our presentation of “Rental income” in the consolidated statements of operations for all periods presented.

(2)

In connection with the adoption of Financial Accounting Standards Board Topic 842, Leases (“ASC 842”), beginning in 2019 we are required to expense internal leasing costs that were previously allowed to be capitalized under prior lease accounting guidance (“ASC 840”). If we had adopted ASC 842 as of January 1, 2018, we would have expensed internal leasing costs (in thousands) of $288, $288, $232 and $185 for the three months ended December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 6



Consolidated Statements of Operations.
Quarterly Results		(unaudited and in thousands)



	Three Months Ended March 31,
	2019			2018
Revenues
Rental income⁽¹⁾	59,604			48,433
Management, leasing, and development services	102			103
Interest income	657			—
Total Revenues	60,363			48,536
Operating Expenses
Property expenses	13,812			11,960
General and administrative ⁽²⁾	7,344			6,162
Depreciation and amortization	21,996			19,452
Total Operating Expenses	43,152			37,574
Other Expenses
Acquisition expenses	23			9
Interest expense	6,471			5,852
Total Expenses	49,646			43,435
Gains on sale of real estate	—			9,983
Net Income	10,717			15,084
Less: net income attributable to noncontrolling interest	(201		)	(318		)
Net income attributable to Rexford Industrial Realty, Inc.	10,516			14,766
Less: preferred stock dividends	(2,423		)	(2,423		)
Less: earnings allocated to participating securities	(114		)	(97		)
Net income attributable to common stockholders	$	7,979		$	12,246

(1)

On January 1, 2019, we adopted ASC 842 and, among other practical expedients, elected the “non-separation practical expedient” in ASC 842, which allows us to avoid separating lease and non-lease rental income. As a result of this election, all rental income earned pursuant to tenant leases, including tenant reimbursements, in 2019 is reflected as one line, “Rental income,” in the 2019 consolidated statement of operations. Prior to the adoption of ASC 842, we presented rental revenues, tenant reimbursements and other income related to leases separately in our consolidated statements of operations. To facilitate comparability, we have reclassified 2018 amounts to conform with 2019 presentation. Under the section “Rental Income” on page 27 in the definitions section of this report, we include a presentation of rental revenues, tenant reimbursements and other income for all periods because we believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate our performance.


(2)	In connection with the adoption of ASC 842, beginning in 2019 we are required to expense internal leasing costs that were previously allowed to be capitalized under ASC 840. If we had adopted ASC 842 as of January 1, 2018, we would have expensed internal leasing costs of $185 thousand during the three months ended March 31, 2018.



	First Quarter 2019 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, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Net Income	$	10,717		$	15,207		$	8,965		$	7,819		$	15,084
Add:
Depreciation and amortization	21,996			20,671			20,144			19,775			19,452
Deduct:
Gains on sale of real estate	—			5,631			—			1,608			9,983
Funds From Operations (FFO)	32,713			30,247			29,109			25,986			24,553
Less: preferred stock dividends	(2,423		)	(2,424		)	(2,423		)	(2,424		)	(2,423		)
Less: FFO attributable to noncontrolling interests⁽²⁾	(733		)	(602		)	(574		)	(562		)	(557		)
Less: FFO attributable to participating securities⁽³⁾	(176		)	(166		)	(165		)	(153		)	(158		)
Company share of FFO	$	29,381		$	27,055		$	25,947		$	22,847		$	21,415

Company share of FFO per common share‐basic	$	0.30		$	0.29		$	0.28		$	0.28		$	0.27
Company share of FFO per common share‐diluted	$	0.30		$	0.29		$	0.28		$	0.27		$	0.27

FFO	$	32,713		$	30,247		$	29,109		$	25,986		$	24,553
Adjust:
Acquisition expenses	23			166			106			37			9
Core FFO	32,736			30,413			29,215			26,023			24,562
Less: preferred stock dividends	(2,423		)	(2,424		)	(2,423		)	(2,424		)	(2,423		)
Less: Core FFO attributable to noncontrolling interests⁽²⁾	(733		)	(606		)	(576		)	(563		)	(557		)
Less: Core FFO attributable to participating securities⁽³⁾	(176		)	(167		)	(166		)	(154		)	(158		)
Company share of Core FFO	$	29,404		$	27,216		$	26,050		$	22,882		$	21,424

Company share of Core FFO per common share‐basic	$	0.30		$	0.29		$	0.28		$	0.28		$	0.27
Company share of Core FFO per common share‐diluted	$	0.30		$	0.29		$	0.28		$	0.27		$	0.27

Weighted-average shares outstanding-basic	98,342,677			93,995,846			91,463,594			82,924,208			78,694,161
Weighted-average shares outstanding-diluted⁽⁴⁾	98,607,786			94,487,773			91,945,206			83,494,825			79,196,060


(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 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)	Weighted-average shares outstanding-diluted includes adjustments for unvested performance units if the effect is dilutive for the reported period.



	First Quarter 2019 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, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Funds From Operations⁽²⁾	$	32,713		$	30,247		$	29,109		$	25,986		$	24,553
Add:
Amortization of deferred financing costs	344			345			344			332			311
Non-cash stock compensation	2,579			2,282			2,244			2,658			1,727
Straight line corporate office rent expense adjustment	—			(47		)	(43		)	(34		)	(41		)
Deduct:
Preferred stock dividends	2,423			2,424			2,423			2,424			2,423
Straight line rental revenue adjustment⁽³⁾	2,067			1,492			1,343			1,673			1,969
Amortization of net below-market lease intangibles	1,751			1,627			1,622			1,616			1,116
Capitalized payments⁽⁴⁾	1,495			1,573			1,677			1,490			1,252
Note payable premium amortization	(1		)	(1		)	(1		)	(2		)	(1		)
Recurring capital expenditures⁽⁵⁾	2,294			2,403			1,405			959			854
2nd generation tenant improvements and leasing commissions⁽⁶⁾	1,209			1,252			966			795			983
Adjusted Funds From Operations (AFFO)	$	24,398		$	22,057		$	22,219		$	19,987		$	17,954


(1)	For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 25 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 $1,399, $1,039, $914, $1,180 and $1,627 for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.


(4)	Includes capitalized interest, taxes, insurance and leasing and construction development compensation.


(5)	Excludes nonrecurring capital expenditures of $7,779, $10,529, $14,211, $9,320 and $11,392 for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.


(6)	Excludes 1st generation tenant improvements/space preparation and leasing commissions of $282, $1,014, $805, $630 and $257 for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 9



Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. ⁽¹⁾
		(unaudited and in thousands)



NOI and Cash NOI

	Three Months Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Rental income⁽²⁾	59,604			56,125			54,469			51,616			48,433
Property expenses	13,812			13,642			13,294			12,775			11,960
Net Operating Income (NOI)	$	45,792		$	42,483		$	41,175		$	38,841		$	36,473
Amortization of above/below market lease intangibles	(1,751		)	(1,627		)	(1,622		)	(1,616		)	(1,116		)
Straight line rental revenue adjustment	(2,067		)	(1,492		)	(1,343		)	(1,673		)	(1,969		)
Cash NOI	$	41,974		$	39,364		$	38,210		$	35,552		$	33,388



EBITDAre and Adjusted EBITDA

	Three Months Ended
	Mar 31, 2019		Dec 31, 2018			Sep 30, 2018		Jun 30, 2018			Mar 31, 2018
Net income	$	10,717	$	15,207		$	8,965	$	7,819		$	15,084
Interest expense	6,471		6,656			6,456		6,452			5,852
Depreciation and amortization	21,996		20,671			20,144		19,775			19,452
Gains on sale of real estate	—		(5,631		)	—		(1,608		)	(9,983		)
EBITDAre	$	39,184	$	36,903		$	35,565	$	32,438		$	30,405
Stock-based compensation amortization	2,579		2,282			2,244		2,658			1,727
Acquisition expenses	23		166			106		37			9
Pro forma effect of acquisitions⁽³⁾	378		1,005			88		1,682			395
Pro forma effect of dispositions⁽⁴⁾	—		(8		)	—		(31		)	(230		)
Adjusted EBITDA	$	42,164	$	40,348		$	38,003	$	36,784		$	32,306


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


(2)	See footnote (1) on page 7 for details related to our presentation of “Rental income” in the consolidated statements of operations for all periods presented.

(3)

Represents the estimated impact on Q1’19 EBITDAre of Q1’19 acquisitions as if they had been acquired on January 1, 2019, the impact on Q4’18 EBITDAre of Q4’18 as if they had been acquired on October 1, 2018, the impact on Q3’18 EBITDAre of Q3’18 acquisitions as if they had been acquired on July 1, 2018, the impact on Q2’18 EBITDAre of Q2’18 acquisitions as if they had been acquired on April 1, 2018, and the impact on Q1’18 EBITDAre of Q1’18 acquisitions as if they had been acquired on January 1, 2018, 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 EBITDAre had we owned the acquired entities as of the beginning of each period.


(4)	Represents the impact on Q4’18 EBITDAre of Q4’18 dispositions as if they had been sold as of October 1, 2018, the impact on Q2’18 EBITDAre of Q2’18 dispositions as if they had been sold as of April 1, 2018, and the impact on Q1’18 EBITDAre of Q1’18 dispositions as if they had been sold as of January 1, 2018. See page 22 for details related to current year disposition properties.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 10



Same Property Portfolio Performance. ⁽¹⁾
		(unaudited and dollars in thousands)



Same Property Portfolio:
Number of properties			147
Square Feet			18,314,542



Same Property Portfolio NOI and Cash NOI:

	Three Months Ended March 31,
	2019			2018			$ Change		% Change
Rental income⁽²⁾⁽³⁾	50,555			47,711			2,844		6.0%
Property expenses	11,818			11,764			54		0.5%
Same property portfolio NOI	$	38,737		$	35,947		$	2,790	7.8%	⁽³⁾
Straight-line rents	(1,471		)	(1,947		)	476		(24.4)%
Amort. above/below market leases	(1,007		)	(1,075		)	68		(6.3)%
Same property portfolio Cash NOI	$	36,259		$	32,925		$	3,334	10.1%	⁽³⁾

Stabilized same property portfolio NOI⁽⁴⁾	$	36,535		$	34,964		$	1,571	4.5%

Stabilized same property portfolio Cash NOI⁽⁴⁾	$	34,412		$	31,974		$	2,438	7.6%



Same Property Portfolio Occupancy:

	March 31, 2019		March 31, 2018		Change (basis points)
	Same Property Portfolio	Stabilized Same Property Portfolio⁽⁵⁾	Same Property Portfolio	Stabilized Same Property Portfolio⁽⁶⁾	Same Property Portfolio	Stabilized Same Property Portfolio
Occupancy:
Los Angeles County	97.9%	98.3%	96.0%	99.4%	190 bps	(110) bps
Orange County	95.2%	97.5%	94.1%	97.1%	110 bps	40 bps
San Bernardino County	97.2%	97.2%	98.7%	98.7%	(150) bps	(150) bps
Ventura County	90.6%	96.6%	87.1%	93.1%	350 bps	350 bps
San Diego County	98.4%	98.4%	95.8%	95.8%	260 bps	260 bps
Total/Weighted Average	96.8%	97.9%	95.4%	98.0%	140 bps	(10) bps


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


(2)	See “Same Property Portfolio Rental Income” on page 27 of the definitions section of this report for a breakdown of rental income into rental revenues, tenant reimbursements and other income for 2018 and 2019.

(3)

Rental income includes lease termination fees of zero and $124 thousand for the three months ended March 31, 2019 and 2018, respectively. Excluding these lease termination fees, Same Property Portfolio NOI increased by approximately 8.1% and Same Property Portfolio Cash NOI increased by approximately 10.5% during the three months ended March 31, 2019, compared to the three months ended March 31, 2018, respectively.


(4)	Excludes the operating results of properties under repositioning or lease-up in 2018 and 2019 (see page 28 for a list of these properties).


(5)	Reflects the occupancy of our Same Property Portfolio as of March 31, 2019, adjusted for space totaling 203,931 RSF at three properties that were classified as repositioning or lease-up as of March 31, 2019. For additional details, refer to pages 20-21 of this report.


(6)	Reflects the occupancy of our Same Portfolio Property as of March 31, 2018, adjusted for space totaling 487,731 RSF at six properties that were classified as repositioning or lease-up as of March 31, 2018.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 11



Capitalization Summary.
		(unaudited and in thousands, except share and per share data)

Capitalization as of March 31, 2019

https://cdn.kscope.io/e2ce6221286b4874eabc1b9b12f2f4f8-chart-78478f1d4dec5fe78c1.jpg



Description	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Common shares outstanding⁽¹⁾	103,804,570			96,610,106			92,497,666			90,848,198			80,441,338
Operating partnership units outstanding⁽²⁾	2,463,229			2,415,811			2,003,104			2,013,564			2,041,175
Total shares and units outstanding at period end	106,267,799			99,025,917			94,500,770			92,861,762			82,482,513
Share price at end of quarter	$	35.81		$	29.47		$	31.96		$	31.39		$	28.79
Common Stock and Operating Partnership Units - Capitalization	$	3,805,450		$	2,918,294		$	3,020,245		$	2,914,931		$	2,374,672
5.875% Series A Cumulative Redeemable Preferred Stock⁽³⁾	90,000			90,000			90,000			90,000			90,000
5.875% Series B Cumulative Redeemable Preferred Stock⁽⁴⁾	75,000			75,000			75,000			75,000			75,000
Total Equity Market Capitalization	$	3,970,450		$	3,083,294		$	3,185,245		$	3,079,931		$	2,539,672

Total Debt	$	761,077		$	761,116		$	761,154		$	761,192		$	662,425
Less: Cash and cash equivalents	(276,575		)	(180,601		)	(183,904		)	(162,704		)	(15,625		)
Net Debt	$	484,502		$	580,515		$	577,250		$	598,488		$	646,800
Total Combined Market Capitalization (Net Debt plus Equity)	$	4,454,952		$	3,663,809		$	3,762,495		$	3,678,419		$	3,186,472

Net debt to total combined market capitalization	10.9		%	15.8		%	15.3		%	16.3		%	20.3		%
Net debt to Adjusted EBITDA (quarterly results annualized)⁽⁵⁾	2.9x			3.6x			3.8x			4.1x			5.0x


(1)	Excludes the following number of shares of unvested restricted stock: 223,476 (Mar 31, 2019), 200,398 (Dec 31, 2018), 209,214 (Sep 30, 2018), 213,867 (Jun 30, 2018) and 226,451 (Mar 31, 2018).

(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. As of March 31, 2019, includes 276,674 vested LTIP Units and 263,236 vested performance units and excludes 334,178 unvested LTIP Units and 591,767 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)	Value based on 3,000,000 outstanding shares of preferred stock at a liquidation preference of $25.00 per share.


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



	First Quarter 2019 Supplemental Financial Reporting Package	Page 12



Debt Summary.		(unaudited and dollars in thousands)

Debt Detail:
As of March 31, 2019



Debt Description	Maturity Date	Stated Interest Rate	Effective Interest Rate⁽¹⁾	Principal Balance⁽²⁾		Expiration Date of Effective Swaps
Secured Debt:
$60M Term Loan	8/1/2023⁽³⁾	LIBOR+1.70%	4.195%	$	58,499
Gilbert/La Palma	3/1/2031	5.125%	5.125%	2,578
Unsecured Debt:
$350M Revolving Credit Facility⁽⁴⁾	2/12/2021⁽⁵⁾	LIBOR +1.10%⁽⁶⁾	3.595%	—
$100M Term Loan Facility	2/14/2022	LIBOR +1.20%⁽⁶⁾	2.964%	100,000		8/14/2021
$225M Term Loan Facility	1/14/2023	LIBOR +1.20%⁽⁶⁾	2.574%	225,000		1/14/2022
$150M Term Loan Facility⁽⁷⁾	5/22/2025	LIBOR +1.50%⁽⁶⁾	3.995%	150,000
$100M Senior Notes	8/6/2025	4.29%	4.290%	100,000
$125M Senior Notes	7/13/2027	3.93%	3.930%	125,000
			3.487%	$	761,077


(1)	Includes the effect of interest rate swaps effective as of March 31, 2019, and excludes the effect of discounts, deferred loan costs and the credit facility fee.


(2)	Excludes unamortized debt issuance costs and discounts aggregating $3.6 million as of March 31, 2019.


(3)	One two-year extension is available, provided that certain conditions are satisfied.


(4)	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 indebtedness to the value of our gross asset value, which is measured on a quarterly basis.


(5)	Two additional six-month extensions are available, provided that certain conditions are satisfied.

(6)

The applicable LIBOR margin ranges from 1.10% to 1.50% for the revolving credit facility, 1.20% to 1.70% for the $100M term loan facility, 1.20% to 1.70% for the $225M term loan facility and 1.50% to 2.20% for the $150M term loan facility depending on the ratio of our outstanding indebtedness to the value of our gross asset value (measured on a quarterly basis). As a result, the effective interest rate will fluctuate from period to period.


(7)	We have an interest rate swap that will effectively fix the $150M term loan facility at 2.7625% plus an applicable LIBOR margin from July 22, 2019 through November 22, 2024.



Debt Composition:
Category	Weighted Average Term Remaining (yrs)⁽¹⁾	Stated Interest Rate	Effective Interest Rate	Balance		% of Total
Fixed	5.1	3.27%	3.27%	$	552,578	73%
Variable	5.6	LIBOR + 1.56%	4.05%	$	208,499	27%
Secured	4.7		4.23%	$	61,077	8%
Unsecured	5.3		3.42%	$	700,000	92%


(1)	The weighted average remaining term to maturity of our consolidated debt is 5.3 years.



Debt Maturity Schedule:
Year	Secured⁽¹⁾		Unsecured		Total		% Total		Effective Interest Rate
2019 - 2021	$	—	$	—	$	—	—	%	—	%
2022	—		100,000		100,000		13	%	2.964	%
2023	58,499		225,000		283,499		37	%	2.909	%
Thereafter	2,578		375,000		377,578		50	%	4.059	%
Total	$	61,077	$	700,000	$	761,077	100	%	3.487	%


(1)	Excludes the effect of scheduled monthly principal payments on amortizing loans.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 13



Portfolio Overview.
At March 31, 2019		(unaudited results)

Consolidated Portfolio:



		Rentable Square Feet			Occupancy %								In-Place ABR⁽²⁾
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 000’s)		Per Square Foot
Central LA	9	537,721	769,647	1,307,368	100.0	%	100.0	%	100.0	%	100.0	%	$	12,071	$9.23
Greater San Fernando Valley	32	2,735,192	542,106	3,277,298	98.3	%	82.1	%	95.6	%	98.5	%	31,053		$9.91
Mid-Counties	13	870,152	276,791	1,146,943	98.6	%	60.8	%	89.5	%	98.8	%	10,373		$10.11
San Gabriel Valley	18	2,023,933	219,250	2,243,183	97.6	%	100.0	%	97.8	%	97.8	%	19,908		$9.07
South Bay	23	2,659,124	327,226	2,986,350	97.1	%	86.6	%	96.0	%	98.6	%	27,751		$9.68
Los Angeles County	95	8,826,122	2,135,020	10,961,142	97.9	%	88.3	%	96.0	%	98.6	%	101,156		$9.61

North Orange County	9	875,061	189,355	1,064,416	95.4	%	100.0	%	96.2	%	96.2	%	9,429		$9.21
OC Airport	7	601,782	37,592	639,374	87.0	%	100.0	%	87.7	%	96.6	%	6,025		$10.74
South Orange County	3	329,458	—	329,458	100.0	%	—	%	100.0	%	100.0	%	3,101		$9.41
West Orange County	6	650,276	120,800	771,076	100.0	%	—	%	84.3	%	100.0	%	5,633		$8.66
Orange County	25	2,456,577	347,747	2,804,324	95.2	%	65.3	%	91.4	%	97.7	%	24,188		$9.43

Inland Empire East	1	51,867	—	51,867	100.0	%	—	%	100.0	%	100.0	%	351		$6.78
Inland Empire West	19	3,416,018	238,568	3,654,586	97.2	%	100.0	%	97.4	%	97.4	%	27,475		$7.72
San Bernardino County	20	3,467,885	238,568	3,706,453	97.2	%	100.0	%	97.4	%	97.4	%	27,826		$7.71

Ventura	16	1,744,485	637,660	2,382,145	90.6	%	68.8	%	84.8	%	95.0	%	18,422		$9.12
Ventura County	16	1,744,485	637,660	2,382,145	90.6	%	68.8	%	84.8	%	95.0	%	18,422		$9.12

Central San Diego	12	1,103,774	—	1,103,774	98.8	%	—	%	98.8	%	98.8	%	13,418		$12.31
North County San Diego	12	638,998	471,094	1,110,092	98.3	%	93.2	%	96.1	%	96.1	%	11,051		$10.36
South County San Diego	1	76,701	—	76,701	95.3	%	—	%	95.3	%	95.3	%	721		$9.87
San Diego County	25	1,819,473	471,094	2,290,567	98.4	%	93.2	%	97.4	%	97.4	%	25,190		$11.30
CONSOLIDATED TOTAL / WTD AVG	181	18,314,542	3,830,089	22,144,631	96.8	%	84.3	%	94.6	%	97.8	%	$	196,782	$9.39


(1)	Excludes space aggregating 722,305 square feet at 10 of our properties that were in various stages of repositioning or lease-up as of March 31, 2019. See pages 20-21 for additional details on these properties.


(2)	See page 25 for definition and details on how these amounts are calculated.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 14



Occupancy and Leasing Trends.
		(unaudited results, data represents consolidated portfolio only)

Occupancy by County:



	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Occupancy:⁽¹⁾
Los Angeles County	96.0%	96.1%	95.1%	95.5%	95.8%
Orange County	91.4%	95.1%	95.1%	95.0%	94.1%
San Bernardino County	97.4%	96.9%	96.5%	96.8%	97.8%
Ventura County	84.8%	88.6%	89.0%	87.8%	87.1%
San Diego County	97.4%	95.2%	97.9%	97.4%	95.8%
Total/Weighted Average	94.6%	95.4%	95.1%	95.2%	95.2%

Consolidated Portfolio SF	22,144,631	21,295,443	20,505,157	20,213,729.03	18,741,304



Leasing Activity:

	Three Months Ended
	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Leasing Activity (SF):⁽²⁾
New leases⁽³⁾	527,869	168,758	583,257	300,591	281,844
Renewal leases⁽³⁾	604,014	463,065	360,430	542,902	566,551
Gross leasing	1,131,883	631,823	943,687	843,493	848,395

Expiring leases	916,362	706,693	733,237	767,362	847,706
Expiring leases - placed into repositioning	132,650	18,957	49,166	66,584	65,762
Net absorption	82,871	(93,827)	161,284	9,547	(65,073)
Retention rate⁽⁴⁾	70%	67%	55%	71%	68%



Weighted Average New / Renewal Leasing Spreads:

	Three Months Ended
	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
GAAP Rent Change	26.2%	25.1%	32.2%	35.5%	25.3%
Cash Rent Change	17.3%	14.8%	21.1%	23.9%	14.9%


(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 Q1'19, Q4'18, Q3'18, Q2'18 and Q1'18 excludes relocations/expansions within Rexford’s portfolio totaling 34,737, 7,537, 42,716, zero and 13,608 rentable square feet, respectively, 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 2019 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 2019:
New	51	527,869	4.1
Renewal	52	604,014	3.7
Total/Weighted Average	103	1,131,883	3.9



Change in Annual Rental Rates and Turnover Costs for Current Quarter Leases:
	GAAP Rent				Cash Rent
First Quarter 2019:	Current Lease	Prior Lease	Rent Change - GAAP	Weighted Average Abatement (Months)	Starting Cash Rent - Current Lease	Expiring Cash Rent - Prior Lease	Rent Change - Cash	Turnover Costs per SF⁽³⁾
New⁽¹⁾	$10.59	$7.76	36.5%	1.3	$10.27	$8.12	26.4%	$3.60
Renewal⁽²⁾	$12.45	$10.20	22.0%	0.5	$12.14	$10.70	13.5%	$0.50
Weighted Average	$11.78	$9.33	26.2%	0.8	$11.47	$9.78	17.3%	$1.53



Uncommenced Leases by County:
Market	Uncommenced Renewal Leases: Leased SF⁽⁴⁾	Uncommenced New Leases: Leased SF⁽⁴⁾	Percent Leased	ABR Under Uncommenced Leases (in thousands)⁽⁵⁾⁽⁶⁾	In-Place + Uncommenced ABR (in thousands)⁽⁵⁾⁽⁶⁾	In-Place + Uncommenced ABR per SF⁽⁶⁾
Los Angeles County	394,360	—	96.0%	$599	$101,755	$9.67
Orange County	39,354	—	91.4%	77	24,265	$9.46
San Bernardino County	218,887	38,647	98.4%	700	28,526	$7.82
San Diego County	223,350	8,533	97.7%	222	25,412	$11.35
Ventura County	34,047	5,266	85.0%	92	18,514	$9.15
Total/Weighted Average	909,998	52,446	94.8%	$1,690	$198,472	$9.45

(1)

GAAP and cash rent statistics and turnover costs for new leases exclude 13 leases aggregating 204,378 rentable square feet for which there was no comparable lease data. Of these 13 excluded leases, four leases for 101,665 rentable square feet relates to a repositioning/redevelopment property. 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 or (iv) lease terms shorter than six months.


(2)	GAAP and cash rent statistics and turnover costs for renewal leases excludes two leases aggregating 11,942 rentable square feet for which there was no comparable lease data, due to either (i) space with different lease structures or (ii) lease terms shorter than six months.


(3)	Turnover costs include estimated tenant improvement and leasing costs associated with leases executed during the current period. Excludes costs for first generation leases.


(4)	Reflects the square footage of renewal and new leases, respectively, that have been signed but have not yet commenced as of March 31, 2019.


(5)	Includes $590 thousand of annualized base rent under Uncommenced New Leases and $1.1 million of incremental annualized base rent under Uncommenced Renewal Leases.


(6)	See page 25 for further details on how these amounts are calculated.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 16



Leasing Statistics (Continued).
		(unaudited results, data represents consolidated portfolio only)

Lease Expiration Schedule as of March 31, 2019:

https://cdn.kscope.io/e2ce6221286b4874eabc1b9b12f2f4f8-chart-ce7cdef4943350d6996.jpg



Year of Lease Expiration	# of Leases Expiring	Total Rentable SF	In-Place + Uncommenced ABR (in thousands)		In-Place + Uncommenced ABR per SF
Available	—	520,790	$	—	$—
Current Repositioning⁽¹⁾	—	619,716	—		$—
MTM Tenants	64	74,035	1,055		$14.25
2019	228	2,040,892	18,746		$9.19
2020	350	4,189,633	38,007		$9.07
2021	311	4,881,508	43,505		$8.91
2022	200	2,735,762	26,322		$9.62
2023	131	2,420,638	26,116		$10.79
2024	60	1,739,164	17,376		$9.99
2025	13	364,868	4,014		$11.00
2026	8	409,574	4,567		$11.15
2027	7	252,538	2,510		$9.94
2028	6	348,447	3,205		$9.20
Thereafter	7	1,547,066	13,049		$8.43
Total Portfolio	1,385	22,144,631	$	198,472	$9.45


(1)	Represents space at eight of our properties that were classified as current repositioning as of March 31, 2019. Excludes completed repositioning properties, properties in lease-up and future repositioning properties. See pages 20-21 for additional details on these properties.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 17



Top Tenants and Lease Segmentation.
		(unaudited results, data represents consolidated portfolio only)

Top 10 Tenants:



Tenant	Submarket	Leased Rentable SF	% of In-Place + Uncommenced ABR	In-Place + Uncommenced ABR per SF	Lease Expiration
Unified Natural Foods, Inc.	Central LA	695,120	2.6%	$7.50	5/8/2038
Federal Express Corporation	South Bay	173,596	1.2%	$14.26	11/30/2032⁽¹⁾
32 Cold, LLC	Central LA	149,157	1.1%	$15.08	3/31/2026⁽²⁾
Cosmetic Laboratories of America, LLC	Greater San Fernando Valley	319,348	1.0%	$6.28	6/30/2020
Triscenic Production Services, Inc.	Greater San Fernando Valley	255,303	1.0%	$7.83	3/31/2022⁽³⁾
Universal Technical Institute of Southern California, LLC	South Bay	142,593	1.0%	$13.69	8/31/2030
Southland Industries, Inc.	West Orange County	207,953	1.0%	$9.27	5/31/2028
Command Logistic Services, Inc.	South Bay	276,396	1.0%	$6.83	9/30/2020
Elliott Auto Supply Co., Inc.	North Orange County	275,879	0.9%	$6.69	12/31/2026
Tesla, Inc.	Greater San Fernando Valley	167,425	0.8%	$9.15	8/31/2022⁽⁴⁾
Top 10 Total / Weighted Average		2,662,770	11.6%	$8.67


(1)	Includes (i) 30,160 rentable square feet expiring September 30, 2027, and (ii) 143,436 rentable square feet expiring November 30, 2032.


(2)	Includes (i) 78,280 rentable square feet expiring September 30, 2025, and (ii) 70,877 rentable square feet expiring March 31, 2026.


(3)	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.


(4)	Includes (i) 16,868 rentable square feet expiring April 30, 2020, (ii) 21,697 rentable square feet expiring November 30, 2019, (iii) 20,310 rentable square feet expiring May 31, 2020, and (iv) 108,550 rentable square feet expiring August 31, 2022.



Lease Segmentation by Size:

Square Feet	Number of Leases	Leased Rentable SF	Rentable SF	Leased %	Leased % Excluding Repositioning	In-Place + Uncommenced ABR (in thousands)⁽¹⁾		% of In-Place + Uncommenced ABR	In-Place + Uncommenced ABR per SF⁽¹⁾
<4,999	757	1,619,186	1,676,501	96.6%	96.6%	$	21,000	10.6%	$12.97
5,000 - 9,999	197	1,391,210	1,462,141	95.1%	95.1%	16,251		8.2%	$11.68
10,000 - 24,999	236	3,779,337	4,107,336	92.0%	94.8%	40,830		20.6%	$10.80
25,000 - 49,999	98	3,527,198	3,760,662	93.8%	99.1%	34,648		17.4%	$9.82
>50,000	97	10,687,194	11,137,991	96.0%	99.5%	85,743		43.2%	$8.02
Total / Weighted Average	1,385	21,004,125	22,144,631	94.8%	98.0%	$	198,472	100.0%	$9.45


(1)	See page 25 for further details on how these amounts are calculated.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 18



Capital Expenditure Summary.
(unaudited results, in thousands, except square feet and per square foot data)

Quarter Ended March 31, 2019



	Year to Date
	Total			SF⁽¹⁾	PSF
Tenant Improvements and Space Preparation:
New Leases‐1st Generation	$	41		26,261	$	1.56
New Leases‐2nd Generation	9			13,525	$	0.67
Renewals	—			—	$	0.00
Total Tenant Improvements and Space Preparation	$	50

Leasing Commissions & Lease Costs:
New Leases‐1st Generation	$	241		254,168	$	0.95
New Leases‐2nd Generation	976			417,158	$	2.34
Renewals	224			138,201	$	1.62
Total Leasing Commissions & Lease Costs	$	1,441

Total Recurring Capex	$	2,294		21,992,471	$	0.10
Recurring Capex % of NOI	5.0		%
Recurring Capex % of Operating Revenue	3.8		%

Nonrecurring Capex:
Development and Repositioning⁽²⁾	$	2,937
Other Repositioning⁽³⁾	3,077
Other⁽⁴⁾	1,765
Total Nonrecurring Capex	$	7,779		11,775,369	$	0.66

Other Capitalized Costs⁽⁵⁾	$	1,529

(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 (including properties that were sold during the period). For nonrecurring capex, reflects the aggregate square footage of the properties in which we incurred such capital expenditures.


(2)	Includes capital expenditures related to properties that were under development or repositioning as of March 31, 2019. For details on these properties see pages 20-21.


(3)	Includes capital expenditures related to other space under repositioning or renovation that are not included on pages 20-21 due to smaller space size or limited downtime for completion.


(4)	Includes other nonrecurring capital expenditures including, but not limited to, costs incurred for replacements of either roof or parking lots, and ADA related construction.


(5)	Includes the following capitalized costs: (i) compensation costs of personnel directly responsible for and who spend their time on development, renovation and rehabilitation activity and (ii) interest, property taxes and insurance costs incurred during the development and construction periods of repositioning or development projects.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 19



Properties and Space Under Repositioning. ⁽¹⁾
As of March 31, 2019		(unaudited results, in thousands, except square feet)



Repositioning Properties

						Same Property Portfolio	Estimated Construction Period
Property (Submarket)	Total Property Rentable Square Feet	Space Under Repo/ Lease-Up	Est. New Dev. Rentable Square Feet⁽²⁾		Total Property Leased % 3/31/19	2019	Start	Target Completion	Est. Period until Stabilized (months)⁽³⁾	Purchase Price⁽⁴⁾		Projected Repo Costs		Projected Total Investment⁽⁵⁾		Cumulative Investment to Date⁽⁶⁾		Actual Quarterly Cash NOI 1Q-2019⁽⁷⁾				Est. Annual Stabilized Cash NOI⁽⁸⁾
CURRENT REPOSITIONING:
28903 Ave. Paine - Dev. (SF Valley)	—	—	115,817		0%	N	2Q-2019	1Q-2020	12 - 15	$	5,515	$	9,275	$	14,790	$	5,846	$	—			$	966
851 Lawrence Drive (Ventura)	49,976	49,976	39,294	⁽⁹⁾	0%	N	2Q-2018	2Q-2020	15 - 18	$	6,663	$	9,723	$	16,386	$	7,029	$	(8	)		$	979
29003 Avenue Sherman (SF Valley)	68,123	68,123	—		0%	N	3Q-2018	2Q-2019	3 - 5	$	9,531	$	1,338	$	10,868	$	9,864	$	(6	)		$	560
16121 Carmenita Rd. (Mid-Counties)	108,500	108,500	—		0%	N	1Q-2019	3Q-2019	7 - 10	$	13,452	$	2,584	$	16,036	$	13,925	$	138			$	906
12821 Knott Street (West OC)	120,800	120,800	39,847		0%	N	1Q-2019	3Q-2020	15 - 18	$	19,768	$	9,714	$	29,482	$	19,768	$	(13	)		$	1,647
2455 Conejo Spectrum Street (Ventura)⁽¹⁰⁾	98,218	98,218	—		0%	N	1Q-2019	4Q-2019	7 - 10	$	19,035	$	1,116	$	20,152	$	19,049	$	(3	)		$	986
25413 Rye Canyon Road (SF Valley)	28,970	28,970	—		40%	N	1Q-2019	4Q-2019	9 - 12	$	5,560	$	1,377	$	6,937	$	5,560	$	10			$	422
TOTAL/WEIGHTED AVERAGE	474,587	474,587	194,958							$	79,524	$	35,127	$	114,651	$	81,041	$	118		⁽¹¹⁾	$	6,466
LEASE-UP:
2722 Fairview Street (OC Airport)	116,575	58,802	—		50%	Y	1Q-2018	4Q-2018	4 - 7	$	17,800	$	1,679	$	19,479	$	18,924	$	99			$	1,184
1580 Carson Street (South Bay)	43,787	43,787	—		0%	N	2Q-2018	4Q-2018	3 - 5	$	7,715	$	1,637	$	9,352	$	8,702	$	(51	)		$	548
TOTAL/WEIGHTED AVERAGE	160,362	102,589	—							$	25,515	$	3,316	$	28,831	$	27,626	$	48			$	1,732
STABILIZED:
14750 Nelson (San Gabriel Valley)	201,990	—	—		92%	Y	--	--	--	$	15,000	$	15,497	$	30,497	$	30,353	$	498			$	2,432
1998 Surveyor Avenue (Ventura)	56,306	—	—		100%	N	--	--	--	$	5,918	$	4,681	$	10,599	$	10,599	$	59			$	612
15401 Figueroa Street (South Bay)	38,584	—	—		100%	Y	--	--	--	$	4,435	$	675	$	5,110	$	5,110	$	(1	)		$	366
1332-1340 Rocky Pt. Dr. (North SD)	73,747	—	—		100%	N	--	--	--	$	10,229	$	360	$	10,589	$	10,443	$	28			$	693
TOTAL/WEIGHTED AVERAGE	370,627	—	—							$	35,582	$	21,213	$	56,795	$	56,505	$	584		⁽¹¹⁾	$	4,103
FUTURE REPOSITIONING:
9615 Norwalk Blvd. (Mid-Counties)	38,362	—	201,808	⁽¹²⁾	69%	Y	3Q-2018	2020	TBD	$	9,642	$	14,803	$	24,445	$	10,294	$	211			$	1,556


(1)	See page 27 for a definition of Properties and Space Under Repositioning.


(2)	Represents the estimated rentable square footage to be added upon completion of current development projects.


(3)	Represents the estimated remaining number of months, as of March 31, 2019, 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. See page 28 for a definition of Stabilization Date - Properties and Space Under Repositioning.


(4)	Includes contractual purchase price plus closing costs.


(5)	Projected total investment includes the purchase price of the property and our current estimate of total expected nonrecurring capital expenditures to be incurred on each repositioning and development project to reach completion. We expect to update our estimates upon completion of the project, or sooner if there are any significant changes to expected costs from quarter to quarter.


(6)	Cumulative investment-to-date includes the purchase price of the property and subsequent costs incurred for nonrecurring capital expenditures.


(7)	Represents the actual cash NOI for each property for the three months ended March 31, 2019. For a definition/discussion of non-GAAP financial measures, see the definitions section beginning on pg. 25 of this report.


(8)	Represents management’s estimate of each property’s annual cash NOI once the property has reached stabilization and initial rental concessions, if any, have elapsed. Actual results may vary materially from our estimates.


(9)	We expect to demolish the existing 49,976 RSF building and construct a new 89,270 RSF multi-unit building.


(10)	We acquired Conejo Spectrum Business Park, a nine-building property during 1Q-2019. Amounts presented on this page represent one of the nine buildings, located at 2455 Conejo Spectrum Street.


(11)	Actual NOI for the three months ended March 31, 2019, reflects the capitalization of $175 thousand of real estate property taxes and insurance for current repositioning and $28 thousand for stabilized properties. We will continue to capitalize taxes and insurance during the period in which construction is taking place to get each repositioning property ready for its intended use.


(12)	9615 Norwalk is a 10.26 acre storage-yard with three buildings totaling 38,362 RSF. In January 2019, we converted the tenant’s MTM land lease to a term lease with an expiration date of June 30, 2020. We will demolish the existing buildings and construct a new 201,808 RSF building upon termination of the land lease.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 20



Properties and Space Under Repositioning (Continued). ⁽¹⁾
As of March 31, 2019		(unaudited results, in thousands, except square feet)



Repositioning Space

			Same Property Portfolio	Estimated Construction Period
Property (Submarket)	Total Property Rentable Square Feet	Space Under Repositioning/Lease-Up	2019	Start	Target Completion	Est. Period until Stabilized (months)⁽²⁾	Projected Repositioning Cost⁽³⁾		Repositioning Costs Incurred to Date		Total Property Leased % 3/31/19	Actual Quarterly Cash NOI 1Q-2019⁽⁴⁾				Estimated Annual Stabilized Cash NOI⁽⁵⁾
CURRENT REPOSITIONING:
3233 Mission Oaks Blvd. - Unit 3233 (Ventura)⁽⁶⁾	461,210	109,129	Y	2Q-2017	2Q-2019	9 - 15	$	8,175	$	6,381	73%	$	(11	)		$	914
7110 E. Rosecrans Avenue - Unit B (South Bay)⁽⁷⁾	73,439	36,000	Y	1Q-2019	2Q-2019	4 - 7	$	1,174	$	336	51%	$	11			$	307
TOTAL		145,129					$	9,349	$	6,717		$	0		⁽⁸⁾	$	1,221

Stabilized Repositionings: Properties and Space

Property (Submarket)		Rentable Square Feet				Stabilized Period						Stabilized Yield
3233 Mission Oaks Blvd. - Unit H (Ventura)		43,927				1Q-2018						N/A⁽⁹⁾
1601 Alton Pkwy. (OC Airport)		124,988				3Q-2018						5.6%⁽¹⁰⁾
301-445 Figueroa Street (South Bay)		133,650				3Q-2018						7.8%
28903 Ave. Paine - Repo. (SF Valley)		111,935				4Q-2018						6.1%
14750 Nelson (San Gabriel Valley)		201,990				1Q-2019						8.0%
1998 Surveyor Avenue (Ventura)		56,306				1Q-2019						5.8%
15401 Figueroa Street (South Bay)		38,584				1Q-2019						7.2%
1332-1340 Rocky Pt. Dr. (North SD)		73,747				1Q-2019						6.5%


(1)	See page 27 for a definition of Properties and Space Under Repositioning.


(2)	Represents the estimated remaining number of months, as of March 31, 2019, 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.


(3)	Projected repositioning cost represents the estimated nonrecurring capital expenditures to be incurred for the repositioning to reach completion. Excludes historical cost of the land and building. We expect to update our estimates upon completion of the project, or sooner if there are any significant changes to expected costs from quarter to quarter.


(4)	Represents the actual cash NOI of repositioning space for the three months ended March 31, 2019. For a definition & discussion of non-GAAP financial measures, see the definitions section beginning on page 25.

(5)

Based on management estimates of annual cash NOI for the repositioning space, once the property has reached stabilization and initial rental concessions, if any, have elapsed. 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)	As of March 31, 2019, we are repositioning space aggregating 109,129 RSF at 3233 Mission Oaks. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of only the space under repositioning vs. the entire property.


(7)	As of March 31, 2019, we are repositioning a 36,000 RSF unit at 7110 Rosecrans Avenue. The amounts presented on this page represent the actual and projected construction costs and the actual and estimated stabilized cash NOI of only the space under repositioning vs. the entire property.


(8)	Actual NOI for the three months ended March 31, 2019, reflects the capitalization of $30 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.


(9)	We are unable to provide a meaningful stabilized yield for these completed projects as these were partial repositionings of larger properties.


(10)	Represents the current yield based on 87% occupancy as of the stabilization date, which is one year after the completion of repositioning construction work. Upon lease-up of the final unit, we project that the stabilized yield will be 7.4%.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 21



Current Year Acquisitions and Dispositions Summary.
As of March 31, 2019		(unaudited results, data represents consolidated portfolio only)

2019 Current Period Acquistions

Acquisition Date

Property Address

County

Submarket

Rentable Square Feet

Acquisition Price
($ in MM)

Occ. % at Acquisition

Occ.% at
Mar 31, 2019

1/15/2019

12821 Knott Street

Orange

West Orange County

120,800

$19.80

—%

1/17/2019

28510 Industry Drive

Los Angeles

Greater San Fernando Valley

46,778

$7.77

100%

1/28/2019

Conejo Spectrum Business Park

Ventura

531,378

$106.25

72%

3/5/2019

2455 Ash Street

San Diego

North County San Diego

42,508

$6.68

100%

3/12/2019

25413 Rye Canyon Road

Los Angeles

Greater San Fernando Valley

48,075

$5.53

40%

789,539

$146.03

2019 Subsequent Period Acquisitions

Acquisition Date

Property Address

County

Submarket

Rentable Square Feet

Acquisition Price
($ in MM)

Occ. % at Acquisition

Occ.% at
Mar 31, 2019

4/10/2019

1515 15th Street⁽¹⁾

Los Angeles

Central LA

238,015

$28.10

⁽¹⁾

—%

n/a

4/12/2019

13890 East Nelson Avenue

Los Angeles

San Gabriel Valley

256,993

$41.81

100%

n/a

4/12/2019

445-449 Freedom Avenue

Orange

North Orange County

92,647

$17.96

100%

n/a

4/12/2019

2270 Camino Vida Roble

San Diego

North County San Diego

106,311

$16.79

70%

n/a

4/16/2019

980 Rancheros Drive

San Diego

North County San Diego

45,678

$7.90

100%

n/a

4/25/2019

10015 Waples Court

San Diego

Central San Diego

106,412

$21.30

—%

n/a

4/25/2019

San Fernando Business Center

Los Angeles

San Fernando Valley

591,660

$118.11

88%

n/a

1,437,716

$251.97

Total Year-to-Date Acquisitions

2,227,255

$398.00

(1)

In exchange for the property located at 1515 15th Street, the seller received 593,960 Series 1 CPOP Units, which are convertible by the holder at any time or by the Company beginning five years after issuance, in each case, into common units of the Operating Partnership on a one-for-one basis. The transaction was priced based upon a stock price of $31.56, equal to the trailing 30-day average closing price of the Company's common stock as of the letter of intent date. The Series 1 CPOP Units are entitled to cumulative cash distributions at a rate of 4.43937% per year using a per unit stated value of $45.50952 (a 44.2% premium to the $31.56 per share described above), all as more particularly described in the Current Report on Form 8-K filed with the SEC on April 10, 2019.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 22



Guidance.
As of March 31, 2019

2019 OUTLOOK*



METRIC	2019 GUIDANCE / ASSUMPTIONS
METRIC	INITIAL GUIDANCE	Q1’19 UPDATED GUIDANCE		RESULTS AS OF MARCH 31, 2019
Net Income Attributable to Common Stockholders per diluted share ⁽¹⁾	$0.04 - $0.08	$0.30 - $0.32 ⁽²⁾	é	$0.08
Company share of Core FFO per diluted share ⁽¹⁾	$1.16 - $1.20	$1.18 - $1.20⁽²⁾	é	$0.30
Same Property Portfolio NOI Growth ⁽³⁾	3.5% - 5.5%	4.5% - 6.0%	é	7.8%
Stabilized Same Property Portfolio NOI Growth ⁽³⁾	3.0% - 3.5%	3.5% - 4.0%	é	4.5%
Year-End Same Property Portfolio Occupancy ⁽³⁾	95.5% - 96.5%	95.5% - 96.5%	—	96.8%
Year-End Stabilized Same Property Portfolio Occupancy ⁽³⁾	96.5% - 97.5%	96.5% - 97.5%	—	97.9%
General and Administrative Expenses ⁽⁴⁾	$29.0M - $30.0M	$29.0M - $30.0M	—	$7.3 M

(1)

Our 2019 Net income and Core FFO guidance refers to the Company's in-place portfolio as of April 30, 2019, and does not include any assumptions for acquisitions, dispositions or balance sheet activities that may or may not occur later during the year. The Company’s in-place portfolio as of April 30, 2019, reflects the acquisition of eleven properties containing 1,437,716 rentable square feet that occurred subsequent to March 31, 2019.


(2)	See page 28 for a reconciliation of the Company’s 2019 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Core FFO per diluted share.

(3)

Our Same Property Portfolio is a subset of our consolidated portfolio and consists of 147 properties aggregating 18,314,542 rentable square feet that were wholly-owned by us as of January 1, 2018, and still owned by us as of March 31, 2019. Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude nine of our properties that were or will be in various stages of repositioning (current and future) or lease-up during 2018 and 2019. See page 27 for the definition of Stabilized Same Property Portfolio which includes a list of these nine properties.


(4)	Our general and administrative expense guidance includes (i) estimated non-cash equity compensation expense of $10.2 million and (ii) estimated internal leasing costs of $1.3 million that will be expensed during 2019 as a result of the adoption of ASC 842 effective January 1, 2019.

* A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, interest rates, the economy, the supply and demand of industrial real estate, the availability and terms of financing to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 23



Net Asset Value Components.
At 3/31/2019		(unaudited and in thousands, except share data)



Net Operating Income

Pro Forma Net Operating Income (NOI)⁽¹⁾	Three Months Ended March 31, 2019
Total operating revenues	$59,604
Property operating expenses	(13,812)
Pro forma effect of uncommenced leases⁽²⁾	399
Pro forma effect of acquisitions⁽³⁾	378
Pro forma NOI effect of properties and space under repositioning⁽⁴⁾	2,810
Pro Forma NOI	49,379
Amortization of net below-market lease intangibles	(1,751)
Straight line rental revenue adjustment	(2,067)
Pro Forma Cash NOI	$45,561

Balance Sheet Items

Other assets and liabilities	March 31, 2019
Cash and cash equivalents	$276,575
Rents and other receivables, net	4,548
Other assets	12,580
Acquisition related deposits	10,875
Accounts payable, accrued expenses and other liabilities	(33,728)
Dividends payable	(19,774)
Tenant security deposits	(24,396)
Prepaid rents	(6,828)
Estimated remaining cost to complete repositioning projects	(51,890)
Total other assets and liabilities	$167,962

Debt and Shares Outstanding

Total consolidated debt⁽⁵⁾	$761,077
Preferred stock - liquidation preference	$165,000

Common shares outstanding⁽⁶⁾	103,804,570
Operating partnership units outstanding⁽⁷⁾	2,463,229
Total common shares and operating partnership units outstanding	106,267,799


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


(2)	Represents the estimated incremental base rent from uncommenced new and renewal leases as if they had commenced as of January 1, 2019.


(3)	Represents the estimated incremental NOI from Q1'19 acquisitions as if they had been acquired on January 1, 2019. 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 we actually owned the acquired entities as of January 1, 2019.

(4)

Represents the estimated incremental NOI from the properties that were classified as current or future repositioning or lease-up during the three months ended March 31, 2019, assuming that all repositioning work had been completed and all of the properties/space were fully stabilized as of January 1, 2019. 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, 2019.


(5)	Excludes unamortized loan discount and debt issuance costs totaling $3.6 million.


(6)	Represents outstanding shares of common stock of the Company, which excludes 223,476 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 276,674 vested LTIP Units and excludes 334,178 unvested LTIP Units and 591,767 unvested performance units.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 24



Notes and Definitions.

Adjusted Funds from Operations (“AFFO”): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing and construction payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) capitalized interest costs resulting from the repositioning/redevelopment of certain of our properties, (v) 2nd generation tenant improvements and leasing commissions and (vi) gain (loss) on extinguishment of debt. Management uses AFFO as a supplemental performance measure because it provides a performance measure that, when compared year over year, captures trends in portfolio operating results. We also believe that, as a widely recognized measure of the performance of REITs, AFFO will be used by investors as a basis to assess our performance in comparison to other REITs. However, because AFFO may exclude certain non-recurring capital expenditures and leasing costs, the utility of AFFO as a measure of our performance is limited. Additionally, other Equity REITs may not calculate AFFO using the method we do. As a result, our AFFO may not be comparable to such other Equity REITs’ AFFO. AFFO should be considered only as a supplement to net income (as computed in accordance with GAAP) as a measure of our performance.

In-Place Annualized Base Rent and Uncommenced Annualized Base Rent:


•	In-Place Annualized Base Rent (“In-Place ABR”): Calculated as the monthly contractual base rent (before rent abatements) per the terms of the lease, as of March 31, 2019, multiplied by 12. Includes leases that have commenced as of March 31, 2019 or leases where tenant has taken early possession of space as of March 31, 2019. Excludes billboard and antenna revenue and tenant reimbursements.


•	In-Place ABR per Square Foot: Calculated by dividing In-Place ABR for the lease by the occupied square feet of the lease, as of March 31, 2019.


•	Combined In-Place and Uncommenced Annualized Base Rent (“In-Place + Uncommenced ABR”): Calculated by adding (i) In-Place ABR and (ii) ABR Under Uncommenced Leases (see definition below). Does not include adjustments for leases that expired and were not renewed subsequent to March 31, 2019, or adjustments for future known non-renewals.


•	ABR Under Uncommenced Leases: Calculated by adding the following:

(i) ABR under Uncommenced New Leases = first full month of contractual base rents (before rent abatements) to be received under Uncommenced New Leases, multiplied by 12.

(ii) Incremental ABR under Uncommenced Renewal Leases = difference between: (a) the first full month of contractual base rents (before rent abatements) to be received under Uncommenced Renewal Leases and (b) the monthly In-Place ABR for the same space as of March 31, 2019, multiplied by 12.


•	In-Place + Uncommenced ABR per Square Foot: Calculated by dividing (i) In-Place + Uncommenced ABR for the leases by (ii) the square footage under commenced and uncommenced leases (net of renewal space) as of March 31, 2019.


•	Uncommenced New Leases: Reflects new leases (for vacant space) that have been signed but have not yet commenced as of March 31, 2019.


•	Uncommenced Renewal Leases: Reflects renewal leases (for space occupied by renewing tenant) that have been signed but have not yet commenced as of March 31, 2019.

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

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

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

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

Core Funds from Operations (“Core FFO”): We calculate Core FFO by adjusting FFO, as defined below, to exclude the impact of certain items that we do not consider reflective of our core revenue or expense streams. For the periods presented, Core FFO adjustments consisted of acquisition expenses. Management believes that Core FFO is a useful supplemental measure as it provides a more meaningful and consistent comparison of operating performance and allows investors to more easily compare the Company's operating results. Because these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may not calculate Core FFO in a consistent manner. Accordingly, our Core FFO may not be comparable to other REITs' core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.



	First Quarter 2019 Supplemental Financial Reporting Package	Page 25



Notes and Definitions.

Debt Covenants ($ in thousands):



		Mar 31, 2019		Dec 31, 2018
	Current Period Covenant	Credit Facility, $225M Term Loan and $150M Term Loan	$100M Senior Notes and $125M Senior Notes	Credit Facility, $225M Term Loan and $150M Term Loan	$100M Senior Notes and $125M Senior Notes
Maximum Leverage Ratio	less than 60%	23.6%	23.6%	25.6%	25.6%
Maximum Secured Leverage Ratio	less than 45%	1.8%	n/a	2.0%	n/a
Maximum Secured Leverage Ratio	less than 40%	n/a	1.8%	n/a	2.0%
Maximum Secured Recourse Debt	less than 15%	—%	—%	—%	—%
Minimum Tangible Net Worth	$1,617,298	$2,374,017	$2,374,017	$2,129,053	$2,129,053
Minimum Fixed Charge Coverage Ratio	at least 1.50 to 1.00	4.6 to 1.00	4.6 to 1.00	4.4 to 1.00	4.4 to 1.00
Unencumbered Leverage Ratio	less than 60%	25.0%	25.0%	26.5%	26.5%
Unencumbered Interest Coverage Ratio	at least 1.75 to 1.00	7.14 to 1.00	7.14 to 1.00	6.80 to 1.00	6.80 to 1.00

Our actual performance for each covenant is calculated based on the definitions set forth in each loan agreement.

EBITDAre and Adjusted EBITDA: We calculate EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). EBITDAre is calculated as net income (loss) (computed in accordance with GAAP), before interest expense, tax expense, depreciation and amortization, gains (or losses) from sales of depreciable operating property, impairment losses and adjustments to reflect our proportionate share of EBITDAre from our unconsolidated joint venture. We calculate Adjusted EBITDA by adding or subtracting from EBITDAre the following items: (i) non-cash stock based compensation expense, (ii) gain (loss) on extinguishment of debt, (iii) acquisition expenses and (iv) the pro-forma effects of acquisitions and dispositions. We believe that EBITDAre and Adjusted EBITDA are helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use these measures in ratios to compare our performance to that of our industry peers. In addition, we believe EBITDAre and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDAre and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our liquidity is limited. Accordingly, EBITDAre and Adjusted EBITDA should not be considered alternatives to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDAre and Adjusted EBITDA should not be considered as alternatives to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate EBITDAre and Adjusted EBITDA differently than we do; accordingly, our EBITDAre and Adjusted EBITDA may not be comparable to such other Equity REITs’ EBITDAre and Adjusted EBITDA. EBITDAre and Adjusted EBITDA should be considered only as supplements to net income (as computed in accordance with GAAP) as a measure of our performance.

Fixed Charge Coverage Ratio:



	For the Three Months Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
EBITDAre	$	39,184		$	36,903		$	35,565		$	32,438		$	30,405
Amortization of above/below market lease intangibles	(1,751		)	(1,627		)	(1,622		)	(1,616		)	(1,116		)
Non-cash stock compensation	2,579			2,282			2,244			2,658			1,727
Straight line corporate office rent expense adjustment	—			(47		)	(43		)	(34		)	(41		)
Straight line rental revenue adjustment	(2,067		)	(1,492		)	(1,343		)	(1,673		)	(1,969		)
Capitalized payments	(866		)	(1,104		)	(1,027		)	(927		)	(881		)
Recurring capital expenditures	(2,294		)	(2,403		)	(1,405		)	(959		)	(854		)
2nd generation tenant improvements and leasing commissions	(1,209		)	(1,252		)	(966		)	(795		)	(983		)
Cash flow for fixed charge coverage calculation	33,576			31,260			31,403			29,092			26,288
Cash interest expense calculation detail:
Interest expense	6,471			6,656			6,456			6,452			5,852
Capitalized interest	629			469			650			563			371
Note payable premium amort.	(1		)	(1		)	(1		)	(2		)	(1		)
Amortization of deferred financing costs	(344		)	(345		)	(344		)	(332		)	(311		)
Cash interest expense	6,755			6,779			6,761			6,681			5,911
Scheduled principal payments	39			38			38			233			232
Preferred stock dividends	2,423			2,424			2,423			2,424			2,423
Fixed charges	$	9,217		$	9,241		$	9,222		$	9,338		$	8,566

Fixed Charge Coverage Ratio	3.6		x	3.4		x	3.4		x	3.1		x	3.1		x

Funds from Operations (“FFO”): We calculate FFO in accordance with the standards established by NAREIT. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization, gains and losses from property dispositions, other than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of performance used by other REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO



	First Quarter 2019 Supplemental Financial Reporting Package	Page 26



Notes and Definitions.

excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate or interpret FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Net Operating Income (“NOI”): NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations including i) rental income, ii) tenant reimbursements, and iii) other income less property expenses. We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense, general and administrative expenses, interest expense, gains (or losses) on sale of real estate and other non-operating items, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs’ NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

Proforma NOI: Proforma NOI is calculated by adding to NOI the following adjustments: (i) the estimated impact on NOI of uncommenced leases as if they had commenced at the beginning of the reportable period, (ii) the estimated impact on NOI of current period acquisitions as if they had been acquired at the beginning of the reportable period, (iii) the actual NOI of properties sold during the current period and (iv) the estimated incremental NOI from properties that were classified as repositioning/lease-up properties as of the end of the reporting period, assuming that all repositioning work had been completed and the properties/space were fully stabilized as of the beginning of the reportable period. These estimates do not purport to be indicative of what operating results would have been had the transactions actually occurred at the beginning of the reportable period and may not be indicative of future operating results.

Rental Income: See below for a breakdown of 2019 and 2018 consolidated rental income. We believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the our performance.



	Three Months Ended
	March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
Rental revenue	$	50,286	$	47,429	$	45,661	$	43,567	$	40,911
Tenant reimbursements	9,041		8,462		8,508		7,932		7,293
Other income	277		234		300		117		229
Rental income	59,604		56,125		54,469		51,616		48,433

Rent Change - Cash: Compares the first month cash rent excluding any abatement on new leases to the last month rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude: (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 an increase or decrease in the leased square footage) or (v) lease terms shorter than six months.

Rent Change - GAAP: Compares GAAP rent, which straightlines rental rate increases and abatements, on new leases to GAAP rent for the most recent expiring lease. Data included for comparable leases only. 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 an increase or decrease in the leased square footage) or (v) lease terms shorter than six months.

Same Property Portfolio Rental Income: See below for a breakdown of 2019 and 2018 rental income for our Same Property Portfolio. We believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the our performance.



	Three Months Ended March 31,
	2019		2018		$ Change		% Change
Rental revenue	$	42,604	$	40,203	$	2,401	6.0%
Tenant reimbursements	7,694		7,254		440		6.1%
Other income	257		254		3		1.2%
Rental income	50,555		47,711		2,844		6.0%



	First Quarter 2019 Supplemental Financial Reporting Package	Page 27



Notes and Definitions.

Stabilization Date - Properties and Space Under Repositioning: We consider a repositioning property to be stabilized at the earlier of the following: (i) upon reaching 90% occupancy or (ii) one year from the date of completion of repositioning construction work.

Stabilized Same Property Portfolio: Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude the properties listed in the table below that were under repositioning/lease-up during comparable years. Stabilized Same Property Portfolio occupancy/leasing statistics exclude vacant/unleased repositioning space at each of these properties as of the end of each reporting period. Stabilized Same Property Portfolio NOI excludes the NOI for the entire property for all comparable periods.

Our Stabilized Same Property Portfolio excludes the following Same Property Portfolio properties aggregating 1,300,733 rentable square feet that were in various stages of repositioning or lease-up during 2018 and the three months ended March 31, 2019:



14742-14750 Nelson Avenue		301-445 Figueroa Street
15401 Figueroa Street		3233 Mission Oaks Boulevard
1601 Alton Parkway		7110 E. Rosecrans Avenue
2700-2722 Fairview Street		9615 Norwalk Boulevard
28903 Avenue Paine

Reconciliation of Net Income to NOI and Cash NOI (in thousands):



	Three Months Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Net Income	$	10,717		$	15,207		$	8,965		$	7,819		$	15,084
Add:
General and administrative	7,344			6,297			6,229			6,506			6,162
Depreciation and amortization	21,996			20,671			20,144			19,775			19,452
Acquisition expenses	23			166			106			37			9
Interest expense	6,471			6,656			6,456			6,452			5,852
Subtract:
Management, leasing, and development services	102			114			116			140			103
Interest income	657			769			609			—			—
Gains on sale of real estate	—			5,631			—			1,608			9,983
NOI	$	45,792		$	42,483		$	41,175		$	38,841		$	36,473
Straight line rental revenue adjustment	(2,067		)	(1,492		)	(1,343		)	(1,673		)	(1,969		)
Amortization of above/below market lease intangibles	(1,751		)	(1,627		)	(1,622		)	(1,616		)	(1,116		)
Cash NOI	$	41,974		$	39,364		$	38,210		$	35,552		$	33,388

Reconciliation of Net Income to Same Property Portfolio NOI, Same Property Portfolio Cash NOI, Stabilized Same Property Portfolio NOI and Stabilized Same Property Portfolio Cash NOI (in thousands):



	Three Months Ended March 31,
	2019			2018
Net income	$	10,717		$	15,084
Add:
General and administrative	7,344			6,162
Depreciation and amortization	21,996			19,452
Acquisition expenses	23			9
Interest expense	6,471			5,852
Deduct:
Management, leasing and development services	102			103
Interest income	657			—
Gains on sale of real estate	—			9,983
NOI	$	45,792		$	36,473
Non-Same Property Portfolio rental income	(9,049		)	(722		)
Non-Same Property Portfolio property expenses	1,994			196
Same Property Portfolio NOI	$	38,737		$	35,947
Straight line rental revenue adjustment	(1,471		)	(1,947		)
Amortization of above/below market lease intangibles	(1,007		)	(1,075		)
Same Property Portfolio Cash NOI	$	36,259		$	32,925

NOI (from above)	$	45,792		$	36,473
Non-Stabilized Same Property Portfolio rental income	(11,926		)	(2,181		)
Non-Stabilized Same Property Portfolio property expenses	2,669			672
Stabilized Same Property Portfolio NOI	$	36,535		$	34,964
Straight line rental revenue adjustment	(1,108		)	(1,828		)
Amortization of above/below market lease intangibles	(1,015		)	(1,162		)
Stabilized Same Property Portfolio Cash NOI	$	34,412		$	31,974

Reconciliation of Net Income Attributable to Common Stockholders per Diluted Share Guidance to Company share of Core FFO per Diluted Share Guidance:



	2019 Estimate
	Low		High
Net income attributable to common stockholders	$	0.30	$	0.32
Company share of depreciation and amortization	$	0.88	$	0.88
Company share of Core FFO	$	1.18	$	1.20



	First Quarter 2019 Supplemental Financial Reporting Package	Page 28