Rexford Industrial Realty, Inc. - FORM 8-K - EX-99.1

Attached files

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8-K - 8-K - Rexford Industrial Realty, Inc.	d692959d8k.htm
EX-99.2 - EX-99.2 - Rexford Industrial Realty, Inc.	d692959dex992.htm

Exhibit 99.1

Rexford Industrial Realty, Inc.

NYSE: REXR

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

Table of Contents


Section	Page

Corporate Data:

Investor Company Summary		3

Financial and Portfolio Highlights and Common Stock Data		4

Consolidated and Combined Financial Results:

Consolidated and Combined Balance Sheet		5

Consolidated and Combined Statement of Operations		6 - 7

Non-GAAP FFO and AFFO Reconciliations		8 - 9

Statement of Operations Reconciliations		10 - 11

Same Property Portfolio Performance		12 - 13

Joint Venture Financial Summary		14 - 15

Capitalization Summary		16

Debt Summary		17

Portfolio Data:

Portfolio Overview		18

Occupancy and Leasing Trends		19

Leasing Statistics		20

Top Tenants and Lease Segmentation		21

Capital Expenditure Summary		22

Properties Under Repositioning		23

Acquisitions and Dispositions Summary		24

Definitions / Discussion of Non-GAAP Financial Measures		25

Disclosures:

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

For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements, see the section entitled “Cautionary Note Regarding Forward-Looking Statements” in our prospectus dated July 18, 2013, which was filed with the Securities and Exchange Commission (“SEC”) and other risks described in documents subsequently filed by us from time to time with the SEC. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 2

Investor Company Summary


Senior Management Team
Howard Schwimmer		Co-Chief Executive Officer, Director
Michael S. Frankel		Co-Chief Executive Officer, Director
Adeel Khan		Chief Financial Officer
Patrick Schlehuber		Director of Acquisitions
Bruce Herbkersman		Director of Construction & Development
Shannon Lewis		Director of Leasing & Asset Management


Board of Directors
Richard Ziman		Chairman
Howard Schwimmer		Co-Chief Executive Officer, Director
Michael S. Frankel		Co-Chief Executive Officer, Director
Robert L. Antin		Director
Steven C. Good		Director
Joel S. Marcus		Director
Peter Schwab		Director

Company Contact Information

11620 Wilshire Blvd

Suite 1000

Los Angeles, CA 90025

310-966-1680

www.RexfordIndustrial.com

Investor Relations Information

ICR

Brad Cohen and Stephen Swett

www.icrinc.com

212-849-3882


Equity Research Coverage
Bank of America Merrill Lynch		James Feldman
J.P. Morgan		Michael W. Mueller, CFA
FBR Capital Markets & Co.		Nikhil Bhalla
Wells Fargo Securities		Brendan Maiorana, CFA

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 3

Financial and Portfolio Highlights and Common Stock Data ⁽¹⁾

(in thousands except per share figures and portfolio statistics)


	Three Months Ended December 31, 2013			Period From July 24, 2013 to Sep. 30, 2013⁽²⁾
Financial Results:
Total rental revenues	$	12,448		$	8,789
Straight line rent		515			290
Fair value lease expense		76			122
Net (loss) income attributable to common stockholders		(881	)		256
Net (loss) income per common share - basic and diluted	$	(0.04	)	$	0.01
Company share of FFO		4,308			3,001
FFO per common share - basic and diluted		0.17			0.12
EBITDA		5,951			4,178
Adjusted EBITDA		6,489			4,605
Dividend declared per common share	$	0.12		$	0.09
Portfolio Statistics:
Portfolio SF - consolidated		6,321,894			5,489,496
Ending occupancy - consolidated portfolio		89.7	%		88.0	%
Pro-forma occupancy including uncommenced leases		91.7	%		89.8	%
Leasing spreads - cash		3.5	%		-1.1	%
Leasing spreads - GAAP		12.9	%		6.7	%
Same Property Performance: ⁽³⁾
Total rental revenue growth		9.7	%		17.0	%
Total property expense growth		16.7	%		12.0	%
NOI growth		7.1	%		19.0	%
Cash NOI growth		14.5	%		15.0	%
Ending occupancy		89.3	%		87.3	%
Occupancy growth (ppt)		3.0	%		5.6	%
Capitalization:
Common stock price at quarter end	$	13.20		$	13.51
Common shares issued and outstanding		25,419,418			24,757,841
Total shares and units issued and outstanding at period end ⁽⁴⁾		28,428,677			28,454,927
Weighted average shares outstanding - basic and diluted		25,191,570			24,574,432
Total equity market capitalization	$	375,259		$	384,426
Total Consolidated Debt		192,559			122,795
Total debt (pro-rata) ⁽⁵⁾		198,784			129,020
Total combined market capitalization		574,043			513,446
Ratios:
Total debt (pro-rata) to total combined market capitalization		34.6	%		25.1	%
Total consolidated debt to adjusted EBITDA (quarterly results annualized)		7.7x			5.3x

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

⁽²⁾	The financials reflect operations since the completion of our initial public offering on July 24, 2013.

⁽³⁾	Comparison of the three months ended December 31, 2013 to the three months ended December 31, 2012.

⁽⁴⁾	Includes 3,009,259 OP units and excludes 140,468 unvested shares of restricted stock as of December 31, 2013. Includes 3,697,086 OP units and excludes 920,734 unvested shares of restricted stock as of September 30, 2013.

⁽⁵⁾	Includes our 15% share of debt in our Mission Oaks joint venture.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 4

Consolidated and Combined Balance Sheet

(in thousands)


	Rexford Industrial Realty, Inc.					Rexford Industrial Realty, Inc. Predecessor
	12/31/13			9/30/13⁽¹⁾		6/30/13⁽¹⁾			3/31/13⁽¹⁾			12/31/12 ⁽¹⁾
	(unaudited)			(unaudited)		(unaudited)			(unaudited)
Assets
Investments in real estate, net	$	487,842		$	432,024	$	378,911		$	312,066		$	313,608
Cash and cash equivalents		8,997			4,399		24,951			47,446			43,499
Restricted cash		325			298		2,026			2,086			1,882
Notes receivable		13,139			13,153		7,876			7,903			11,911
Rents and other receivables, net		929			869		685			446			559
Deferred rent receivable		3,642			3,428		3,862			3,910			3,727
Deferred leasing costs and in-place lease intangibles, net		14,189			11,199		7,394			4,510			5,003
Deferred loan costs, net		1,597			1,609		1,483			1,147			1,382
Acquired above-market leases, net		1,597			1,888		1,614			127			179
Indefinite-lived intangible		5,271			—		—			—			—
Other assets		2,334			2,317		4,550			3,840			1,868
Acquisition related deposits		1,510			1,435		210			2,483			260
Investment in unconsolidated real estate entities		5,687			8,982		11,486			12,362			12,697
Assets associated with real estate held for sale		7,616			7,461		7,343			22,065			23,921

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

Liabilities
Notes payable	$	192,491		$	122,857	$	343,663		$	299,580		$	295,419
Accounts payable, accrued expenses and other liabilities		6,024			4,586		2,328			3,013			2,575
Due to members		—			—		—			—			1,221
Interest rate contracts		—			—		—			—			49
Dividends payable		5,368			—		—			—			—
Acquired lease intangible liabilities, net⁽²⁾		1,160			535		65			32			39
Tenant security deposits		6,155			4,840		4,521			4,075			3,738
Prepaid rents		1,448			447		542			322			335
Liabilities associated with real estate held for sale		260			195		7,877			18,462			20,872

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

Equity
Rexford Industrial Realty Inc. common stock	$	255		$	257	$	—		$	—		$	—
Rexford Industrial Realty Inc. additional paid-in capital		311,936			308,937		—			—			—
Rexford Industrial Realty Inc. (accumulated deficit) retained earnings		(5,993	)		256		—			—			—

Total Rexford Industrial Realty Inc. stockholders’ equity		306,198			309,450		—			—			—

Predecessor equity		—			—		11,968			11,968			11,962
Predecessor accumulated deficit and distributions		—			—		(27,592	)		(25,271	)		(24,653	)

Total Rexford Industrial Realty, Inc./Predecessor Equity		306,198			309,450		(15,624	)		(13,303	)		(12,691	)

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

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

Total Liabilities and Equity	$	554,675		$	489,062	$	452,391		$	420,391		$	420,496

⁽¹⁾	For comparability, certain prior period amounts have been reclassified to conform to current period presentation of properties held for sale.

⁽²⁾	The balance at December 31, 2013 includes net below market lease of $883,000 and net above market ground lease of $277,000. All other periods include only net below market leases.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 5

Consolidated and Combined Statement of Operations

Quarterly Results

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


	Rexford Industrial Realty, Inc.⁽¹⁾						Rexford Industrial Realty, Inc. Predecessor
	Quarter ended December 31, 2013			Period from July 24, 2013 to Sep. 30, 2013			Period from July 1, 2013 to July 23, 2013			Quarter ended June 30, 2013			Quarter ended March 31, 2013
Rental Revenues
Rental revenues	$	10,809		$	7,640		$	2,384		$	9,062		$	7,760
Tenant reimbursements		1,333			828			254			1,112			847
Management, leasing, and development services		253			281			13			170			261
Other income		53			40			20			49			118

Total rental revenues		12,448			8,789			2,671			10,393			8,986
Interest income		190			191			63			324			311

Total Revenues		12,638			8,980			2,734			10,717			9,297
Operating Expenses
Property expenses	$	3,211		$	2,026		$	565		$	2,397		$	2,074
General and administrative		2,827			2,500			1,885			1,396			1,139
Depreciation and amortization		5,661			3,025			888			3,514			2,620
Other property expenses		666			501			124			438			326

Total Operating Expenses		12,365			8,052			3,462			7,745			6,159
Other (Income) Expense
Acquisition expenses	$	421		$	119		$	7		$	624		$	93
Interest expense		1,046			717			1,233			4,386			3,776
Gain on mark-to-market of interest rate swaps		—			—			—			—			(49	)

Total Other Expense		1,467			836			1,240			5,010			3,820

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

Equity in income (loss) from unconsolidated real estate entities	$	9		$	83		$	9		$	(712	)	$	(212	)
Gain from early repayment of note receivable		—			—			—			—			1,365
Loss on extinguishment of debt		—			—			(3,919	)		—			(37	)

Net Income (Loss) from Continuing Operations	$	(1,185	)	$	175		$	(5,878	)	$	(2,750	)	$	434

Discontinued Operations
Income (loss) from discontinued operationsbefore gains on sale of real estate	$	179		$	120		$	27		$	(257	)	$	(581	)
Loss on extinguishment of debt		—			—			(17	)		(41	)		(209	)
Gain on sale of real estate		—			—			—			2,580			2,409

Income from Discontinued Operations	$	179		$	120		$	10		$	2,282		$	1,619

Net Income (Loss)	$	(1,006	)	$	295		$	(5,868	)	$	(468	)	$	2,053

Net (income) loss attributable to noncontrolling interests	$	125		$	(39	)	$	3,559		$	(1,818	)	$	(1,726	)

Net Income (Loss) Attributable to Common Stockholders/Predecessor	$	(881	)	$	256		$	(2,309	)	$	(2,286	)	$	327

Earnings per Common Share - Basic and Diluted
Net income (loss) available to common stockholders	$	(0.04	)	$	0.01

Weighted average shares outstanding - basic and diluted		25,191,570			24,574,432

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 6

Consolidated and Combined Statement of Operations

Quarterly and Year-to-Date Results

(in thousands)


	Rexford Industrial Realty, Inc.			Rexford Industrial Realty, Inc. Predecessor			Rexford Industrial Realty, Inc. and Predecessor⁽¹⁾			Rexford Industrial Realty, Inc. Predecessor
	Quarter ended December 31,						Year ended December31,
	2013			2012			2013			2012
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Rental Revenues
Rental revenues	$	10,809		$	7,315		$	37,655		$	27,842
Tenant reimbursements		1,333			768			4,373			2,952
Management, leasing, and development services		253			174			978			518
Other income		53			27			280			105

Total rental revenues		12,448			8,284			43,286			31,417
Interest income		190			395			1,079			1,577

Total Revenues		12,638			8,679			44,365			32,994
Operating Expenses
Property expenses		3,211			1,837			10,276			7,950
General and administrative		2,827			1,279			9,747			5,146
Depreciation and amortization		5,661			2,777			15,708			11,921
Other property expenses		666			357			2,052			1,300

Total Operating Expenses		12,365			6,250			37,783			26,317
Other (Income) Expense
Acquisition expenses		421			354			1,264			599
Interest expense		1,046			4,221			11,158			16,875
Gain on mark-to-market of interest rate swaps		—			(526	)		(49	)		(2,361	)

Total Other Expense		1,467			4,049			12,373			15,113

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

Equity in income (loss) from unconsolidated real estate entities		9			56			(823	)		122
Gain from early repayment of note receivable		—			—			1,365			—
Loss on extinguishment of debt		—			—			(3,955	)		—

Net Loss from Continuing Operations		(1,185	)		(1,564	)		(9,204	)		(8,314	)

Discontinued Operations
Loss from discontinued operations before gains on sale of real estate		179			(173	)		(510	)		(698	)
Loss on extinguishment of debt		—			—			(267	)		—
Gain on sale of real estate		—			55			4,989			55

Income (Loss) from Discontinued Operations		179			(118	)		4,212			(643	)

Net Loss		(1,006	)		(1,682	)		(4,992	)		(8,957	)

Net loss attributable to noncontrolling interests		125			154			101			4,066

Net Loss Attributable to Common Stockholders/Predecessor	$	(881	)	$	(1,528	)	$	(4,891	)	$	(4,891	)

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 7

Non-GAAP FFO ⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.⁽²⁾					Rexford Industrial Realty, Inc. Predecessor
									Three Months Ended
	Three Months Ended December 31, 2013			July 24, 2013 to Sep. 30, 2013		July 1, 2013 to July 23, 2013			June 30, 2013			March 31, 2013
Funds From Operations (FFO)
Net income (loss)	$	(881	)	$	256	$	(5,868	)	$	(468	)	$	2,053
Add:
Depreciation and amortization, including amounts in discontinued operations		5,716			3,062		901			3,611			3,285
Depreciation and amortization from unconsolidated joint ventures and tenants in common		153			96		107			144			470
Impairment write-downs of depreciable real estate - unconsolidated joint ventures and tenants in common		—			—		—			837			—
Loss from early extinguishment of debt		—			—		3,935			41			246
Net income attributable to noncontrolling interests		(125	)		39		—			—			—
Deduct:
Gains on sale of real estate		—			—		—			2,580			2,409

FFO available to common shareholders and unitholders	$	4,863		$	3,453	$	(925	)	$	1,585		$	3,645

Company share of FFO ⁽³⁾	$	4,308		$	3,001

FFO per share - basic and diluted	$	0.17		$	0.12

FFO available to common shareholders and unitholders	$	4,863		$	3,453
Add: Non-recurring legal fees⁽⁴⁾		225			235

FFO available to common shareholders and unitholders before non-recurring legal fees	$	5,088		$	3,688

Company share of FFO before non-recurring legal fees ⁽³⁾	$	4,507		$	3,267

FFO per share before non-recurring legal fees - basic and diluted	$	0.18		$	0.13

Weighted-average shares outstanding - basic and diluted		25,191,570			24,574,432
Weighted-average diluted shares and units		28,436,531			28,271,518

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

⁽²⁾	The financials reflect operations since the completion of our initial public offering on July 24, 2013.

⁽³⁾	Based on weighted average interest in our operating partnership of 11.41% for the period from October 1, 2013 to December 31, 2013.

⁽⁴⁾	Non-recurring legal fees relate to Accommodation and Litigation.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 8

Non-GAAP AFFO ⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.⁽²⁾						Rexford Industrial Realty, Inc. Predecessor
	Three Months Ended December 31, 2013			July 24, 2013 to Sep. 30, 2013			July 1, 2013 to July 23, 2013			Three Months Ended June 30, 2013			Three Months Ended March 31, 2013
Adjusted Funds From Operations (AFFO)
FFO available to common shareholders and unitholders	$	4,863		$	3,453		$	(925	)	$	1,585		$	3,645
Add:
Amortization of deferred financing costs		124			93			127			406			251
Fair value lease expense		76			122			44			155			55
Acquisition costs		421			119			7			624			93
Non-cash stock compensation		(59	)		326			900			20			66
Deduct:
Straight line rent adjustment		515			290			41			44			196
Gain on mark-to-market interest rate swaps		—			—			—			—			49
Capitalized payments⁽³⁾		246			67			23			79			84
Note Receivable discount amortization		50			25			8			32			62
Note Payable premium amortization		11			9			3			12			12
Recurring capital expenditures ⁽⁴⁾		335			139			—			385			72
2nd generation tenant improvements and leasing commissions ⁽⁵⁾		390			166			(1	)		368			171
Unconsolidated joint venture AFFO adjustments		(21	)		(7	)		(10	)		(18	)		(8	)

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

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

⁽²⁾	The financials reflect operations since the completion of our initial public offering on July 24, 2013.

⁽³⁾	Includes capitalized leasing and construction development payroll.

⁽⁴⁾

Excludes nonrecurring capital expenditures of $748,000, $414,000, $1,000, $200,000, and $345,000 for the three months ended December 31, 2013, July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013 and the three months ended March 31, 2013, respectively.

⁽⁵⁾

Excludes 1st generation tenant improvements and leasing commissions of $370,000, $86,000, $27,000, $599,000, and $51,000 for the three months ended December 31, 2013, the period from July 24, 2013 to September 30, 2013, the period from July 1, 2013 to July 23, 2013, the three months ended June 30, 2013, and the three months ended March 31, 2013, respectively.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 9

Statement of Operations Reconciliations⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.						Rexford Industrial Realty, Inc. Predecessor
	Three Months Ended December 31, 2013			July 24, 2013 to Sep. 30, 2013			July 1, 2013 to July 23, 2013			Three Months Ended
	Three Months Ended December 31, 2013			July 24, 2013 to Sep. 30, 2013			July 1, 2013 to July 23, 2013			June 30, 2013			March 31, 2013
Net Operating Income (NOI)
Rental revenues	$	10,809		$	7,640		$	2,384		$	9,062		$	7,760
Tenant reimbursements		1,333			828			254			1,112			847
Other income		53			40			20			49			118

Total operating revenues		12,195			8,508			2,658			10,223			8,725
Property expenses		3,211			2,026			565			2,397			2,074
Other property expenses		666			501			124			438			326

Total operating expenses		3,877			2,527			689			2,835			2,400

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

Fair value lease revenue		76			122			44			155			55
Straight line rent adjustment		(515	)		(290	)		(41	)		(44	)		(196	)

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

Net Income (Loss)	$	(1,006	)	$	295		$	(5,868	)	$	(468	)	$	2,053
Add:
General and administrative		2,827			2,500			1,885			1,396			1,139
Depreciation and amortization		5,661			3,025			888			3,514			2,620
Acquisition expenses		421			119			7			624			93
Interest expense		1,046			717			1,233			4,386			3,776
Gain on mark-to-market of interest rate swaps		—			—			—			—			(49	)
Subtract:
Management, leasing, and development services		253			281			13			170			261
Interest income		190			191			63			324			311
Equity in income (loss) from unconsolidated real estate entities		9			83			9			(712	)		(212	)
Gain from early repayment of note receivable		—			—			—			—			1,365
Loss on extinguishment of debt		—			—			(3,919	)		—			(37	)
Income from discontinued operations		179			120			10			2,282			1,619

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

Fair value lease revenue		76			122			44			155			55
Straight line rent adjustment		(515	)		(290	)		(41	)		(44	)		(196	)

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

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 10

Statement of Operations Reconciliations⁽¹⁾

(in thousands)

(unaudited results)


	Rexford Industrial Realty, Inc.
	Three Months Ended			July 24, 2013 to September 30, 2013
	December 31, 2013			July 24, 2013 to September 30, 2013
Net income (loss)	$	(1,006	)	$	295
Interest expense		1,046			717
Proportionate share of interest expense from unconsolidated joint ventures		42			32
Depreciation and amortization		5,661			3,025
Depreciation and amortization included in discontinued operations		55			37
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures		153			72

EBITDA	$	5,951		$	4,178

Stock-based compensation amortization		(59	)		326
Loss on extinguishment of debt		—			—
Non-recurring legal fees⁽²⁾		225			235
Pro forma effect of acquisitions⁽³⁾		606			23
Pro forma effect of assets sold subsequent to December 31, 2013 ⁽⁴⁾		(234	)		(157	)

Adjusted EBITDA	$	6,489		$	4,605

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

⁽²⁾	Non-recurring legal fees relate to Accommodation and Litigation.

⁽³⁾

Represents the estimated impact of Q4’13 acquisitions as if they had been acquired on October 1, 2013, and Q3’13 acquisitions as if they had been acquired on July 24, 2013. We have made a number of assumptions in calculating such estimates and there can be no assurance that we would have generated the projected levels of EBITDA had we owned the acquired entities as of October 1, 2013.

⁽⁴⁾	Represents the estimated impact of Kaiser, which was sold on January 29, 2014, as if it had been disposed of as of the beginning of the period presented.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 11

Same Property Portfolio Performance⁽¹⁾

Statement of Operations and NOI Reconciliation

(in thousands)

(unaudited results)

Same Property Portfolio Statement of Operations:


	Three Months Ended December 31,												The Year Ended December 31,
	2013			2012			$ Change			% Change			2013 ⁽²⁾			2012			$ Change			% Change
Rental Revenues
Rental revenues	$	7,901		$	7,263		$	638			8.8	%	$	29,896		$	27,268		$	2,628			9.6	%
Tenant reimbursements		881			771			110			14.3	%		3,275			2,843			432			15.2	%
Other operating revenues		33			3			30			1000.0	%		231			79			152			192.4	%

Total rental revenues		8,815			8,037			778			9.7	%		33,402			30,190			3,212			10.6	%
Interest income		190			252			(62	)		(24.6	%)		1,016			1,004			12			1.2	%

Total Revenues		9,005			8,289			716			8.6	%		34,418			31,194			3,224			10.3	%
Operating Expenses
Property expenses	$	2,532		$	2,170		$	362			16.7	%	$	9,283		$	8,777		$	506			5.8	%
Depreciation and amortization		3,695			2,967			728			24.5	%		11,313			12,129			(816	)		(6.7	%)

Total Operating Expenses		6,227			5,137			1,090			21.2	%		20,596			20,906			(310	)		(1.5	%)
Other (Income) Expense
Interest expense ⁽³⁾		60			4,299			(4,239	)		(98.6	%)		9,075			17,339			(8,264	)		(47.7	%)

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

Total Expenses		6,287			9,436			(3,149	)		(33.4	%)		29,671			38,245			(8,574	)		(22.4	%)
Loss on extinguishment of debt		—			—			—						(3,382	)		—			(3,382	)

Net Income (Loss)	$	2,718		$	(1,147	)	$	3,865			337.0	%	$	1,365		$	(7,051	)	$	8,416			119.4	%


Same Property Portfolio NOI Reconciliation:

	Three Months Ended December 31,												The Year Ended December 31,
	2013 ⁽²⁾			2012			$ Change			% Change			2013 ⁽²⁾			2012			$ Change			% Change
NOI
Net Income (Loss)	$	2,718		$	(1,147	)								1,365		$	(7,051	)
Add:
Interest expense ⁽³⁾		60			4,299									9,075			17,339
Depreciation and amortization		3,695			2,967									11,313			12,129
Deduct:
Loss on extinguishment of debt		—			—									(3,382	)		—
Interest income		190			252									1,016			1,004

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

Straight-line rents		(209	)		(579	)								(158	)		(802	)
Amort. above/below market leases		24			36									77			142

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

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

⁽²⁾	Reflects the results of operations for our Predecessor for the period from January 1, 2013 to July 23, 2013 and Rexford Industrial Realty, Inc. for the period from July 24, 2013 through December 31, 2013.

⁽³⁾

Interest expense for the three months ended December 31, 2013 only reflects interest for the loan secured by our property located at 107700 Jersey Blvd. Interest on our post-IPO $60mm term loan, which is secured by multiple properties, is being treated as debt of the operating partnership and accordingly the interest is not being pushed down to the property.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 12

Same Property Portfolio Performance ⁽¹⁾

NOI Reconciliation, Portfolio Detail, and Occupancy

(in thousands)

(unaudited results)

Same Property Portfolio NOI Reconciliation Continued:


	Three Months Ended December 31,												Year Ended December 31,
	2013			2012			$ Change			% Change			2013 ⁽²⁾			2012			$ Change			% Change
Rental revenues	$	7,901		$	7,263		$	638			8.8	%	$	29,896		$	27,268		$	2,628			9.6	%
Tenant reimbursements		881			771			110			14.3	%		3,275			2,843			432			15.2	%
Other operating revenues		33			3			30			1000.0	%		231			79			152			192.4	%

Total rental revenue		8,815			8,037			778			9.7	%		33,402			30,190			3,212			10.6	%
Property expenses		2,085			1,853			232			12.5	%		7,884			7,664			220			2.9	%
Other property expenses		447			317			130			41.0	%		1,399			1,113			286			25.7	%

Total property expense		2,532			2,170			362			16.7	%		9,283			8,777			506			5.8	%

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

Straight-line rents		(209	)		(579	)		370			(63.9	%)		(158	)		(802	)		644			(80.3	%)
Amort. above/below market leases		24			36			(12	)		(33.3	%)		77			142			(65	)		(45.8	%)

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

Same Property Portfolio Detail:


	Quarterly Same Property Portfolio Detail												Annual Same Property Portfolio Detail
	# of Properties			Square Feet			Wtd Avg. Occupancy						# of Properties			Square Feet			Wtd Avg. Occupancy
							2013			2012									2013			2012
Period ended September 30, 2013 and 2012		49			4,320,532			87.3	%		81.6	%		47			4,174,679			87.1	%		81.2	%
Additions (deductions)		(1	)		(124,944	)		100.0	%		5.1	%		(1	)		(124,944	)		100.0	%		5.1	%

Period ended December 31, 2013 and 2012		48			4,195,588			89.3	%		86.3	%		46			4,049,735			89.1	%		86.1	%

Same Property Portfolio Occupancy:


	Three Months Ended December 31, 2013	Three Months Ended December 31, 2012	Change (ppt)
Occupancy:
Los Angeles County	89.3%	89.5%	-0.2%
Orange County	95.7%	87.6%	8.1%
San Bernardino County	88.4%	84.5%	3.9%
Ventura County	100.0%	100.0%	0.0%
San Diego County	81.6%	72.2%	9.4%
Other	80.6%	74.9%	5.7%

Total/Weighted Average	89.3%	86.3%	3.0%

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

⁽²⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Fourth Quarter 2013

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Page 13

Joint Venture Financial Summary

Balance Sheet

(in thousands)

(unaudited results)


	Mission Oaks⁽¹⁾
	December 31, 2013			September 30, 2013			June 30, 2013
Assets:
Investments in real estate, net	$	54,074		$	53,316			51,240
Cash and cash equivalents		811			781			1,758
Rents and other receivables, net		152			286			145
Deferred rent receivable		107			62			12
Deferred leasing costs and acquisition related intangible assets, net		5,254			5,913			6,165
Deferred loan costs, net		159			185			212
Acquired above-market leases, net		823			912			1,001
Other assets		42			73			101

Total Assets	$	61,422		$	61,528		$	60,634

Liabilities:
Notes payable	$	41,500		$	41,500		$	41,500
Accounts payable, accrued expenses and other liabilities		689			755			244
Tenant security deposits		277			267			267
Prepaid rents		9			—			—

Total Liabilities		42,475			42,522			42,011

Equity:
Equity		18,762			18,762			18,762
Accumulated deficit and distributions		185			244			(139	)

Total Equity		18,947			19,006			18,623

Total Liabilities and Equity	$	61,422		$	61,528		$	60,634

Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%		15	%

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

Fourth Quarter 2013

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Page 14

Joint Venture Financial Summary⁽¹⁾

Statement of Operations

(in thousands)

(unaudited results)

Statement of Operations:


	Mission Oaks⁽²⁾
	Three Months Ended
	December 31, 2013			September 30, 2013			June 30, 2013
Income Statement
Rental revenues	$	1,419		$	1,427		$	1,272
Tenant reimbursements		330			330			261
Other operating revenues		260			455			294

Total revenue		2,009			2,212			1,827
Total operating expense		736			912			696

NOI		1,273			1,300			1,131

General and administrative		32			1			39
Depreciation and amortization		1,021			637			650
Interest expense		278			280			281

Total expense		2,067			1,830			1,666

Net Income (Loss)	$	(58	)	$	382		$	161

EBITDA
Net income (loss)	$	(58	)	$	382		$	161
Interest expense		278			280			281
Depreciation and amortization		1,021			637			650

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

Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%		15	%
Reconciliation - Equity Income in Joint Venture:
Net income (loss)	$	(58	)	$	382		$	161
Rexford Industrial Realty, Inc./Predecessor Ownership %:		15	%		15	%		15	%
Company share		(9	)		57			24
Intercompany eliminations		18			39			35

Equity in net income (loss) from unconsolidated real estate entities	$	9		$	96		$	59

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

⁽²⁾	These financials represent amounts attributable to the entities and do not represent our proportionate share.

Fourth Quarter 2013

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Capitalization Summary

(unaudited results)

Capitalization as of December 31, 2013


Description	December 31, 2013			September 30, 2013
Common shares ⁽¹⁾		25,419,418			24,757,841
Operating partnership units		3,009,259			3,697,086

Total shares and units at period end ⁽¹⁾		28,428,677			28,454,927
Share price at 12/31/13	$	13.20		$	13.51

Total Equity Market Capitalization	$	375,258,536		$	384,426,064
Total Consolidated Debt	$	192,558,968		$	122,794,765
Plus: pro-rata share of debt related to unconsolidated JV’s		6,225,000			6,225,000

Total Debt (pro-rata)	$	198,783,968		$	129,019,765

Total Combined Market Capitalization	$	574,042,504		$	513,445,829

Total debt (pro-rata) to total combined market capitalization		34.6	%		25.1	%
Total debt (pro-rata) to adjusted EBITDA (quarterly results annualized)		7.7x			5.3x

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

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Page 16

Debt Summary

(in thousands)

(unaudited results)

Debt Detail:

As of December 31, 2013


Debt Description	Initial Maturity Date		Maturity Date w/ Extensions	Stated Interest Rate	Effective Interest Rate			Balance
Secured Debt:
Glendale Commerce Center⁽¹⁾		5/1/2016	5/1/2018	LIBOR + 2.00%		2.169	%	$	42,750
10700 Jersey Blvd.		1/1/2015	N/A	5.45%		5.450	%		5,139
Term Loan		8/1/2019	8/1/2020	LIBOR + 1.90%		2.067	%		60,000
Gilbert/La Palma		3/1/2031	N/A	5.125%		5.125	%		3,295
Unsecured Credit Facility:
$200M facility		7/24/2016	7/24/2018	LIBOR + 1.50%		1.992	%⁽²⁾		81,375

Total Consolidated:						2.200	%	$	192,559

Pro-rata Joint Venture Interest:
Mission Oaks ⁽³⁾		6/28/2015	6/28/2017	LIBOR + 2.50%		2.688	%	$	6,225

⁽¹⁾	Located at 3350 Tyburn St., 3332—3424 N. San Fernando Rd.

⁽²⁾	Includes the effect of the unused commitment fee which is calculated as 0.30% of the daily unused commitment.

⁽³⁾	3001, 3175 & 3233 Mission Oaks Blvd. structured as 3 separate cross-collateralized loans with similar terms.

Consolidated Debt Composition:


Category	Avg. Term Remaining (yrs)		Stated Interest Rate	Effective Interest Rate			Balance		% of Total
Fixed		7.3	5.32%		5.32	%	$	8,434		4	%
Variable⁽¹⁾		3.5	LIBOR + 1.75%		2.06	%	$	184,125		96	%

Secured		4.5			2.35	%	$	111,184		58	%
Unsecured credit facility		2.6			1.99	%	$	81,375		42	%

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

Debt Maturity Schedule:


Year	Secured		Unsecured Credit Facility		Total		% Total			Interest Rate
2014	$	—	$	—	$	—		0	%		—
2015		5,139		—		5,139		3	%		5.45	%
2016		42,750		81,375		124,125		64	%		2.05	%
2017		—		—		—		0	%		—
2018		—		—		—		0	%		—
2019		60,000		—		60,000		31	%		2.07	%
Thereafter		3,295		—		3,295		2	%		5.13	%

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 17

Portfolio Overview

at 12/31/2013

(unaudited results)

Consolidated Portfolio:

INDUSTRIAL:


											Ann. Base Rent
Market	# Properties		% Owned			Pro-rata Sq. Ft.		Occ. %			Total (in thousands)		per SF
Greater San Fernando Valley		16		100.0	%		1,527,827		94.9	%	$	14,308	$	9.87
San Gabriel Valley		8		100.0	%		978,341		97.6	%		7,240	$	7.58
Central LA		1		100.0	%		190,663		100.0	%		1,272	$	6.67
Mid-Counties		4		100.0	%		522,430		75.0	%		2,974	$	7.59
South Bay		6		100.0	%		335,311		79.5	%		2,009	$	7.53

Los Angeles County		35		100.0	%		3,554,572		91.5	%		27,803	$	8.55
North Orange County		4		100.0	%		459,754		88.5	%		3,877	$	9.53
Airport		4		100.0	%		289,040		96.8	%		2,274	$	8.13

Orange County		8		100.0	%		748,794		91.7	%		6,151	$	8.96
Inland Empire West		5		100.0	%		495,561		86.4	%		3,995	$	9.34
Inland Empire East		2		100.0	%		85,282		94.2	%		476	$	5.92

San Bernardino County		7		100.0	%		580,843		87.5	%		4,471	$	8.80
Camarillo / Oxnard		3		100.0	%		410,533		97.7	%		3,086	$	7.69

Ventura County		3		100.0	%		410,533		97.7	%		3,086	$	7.69
North County		7		100.0	%		709,251		84.9	%		5,034	$	8.36
Central		2		100.0	%		137,989		93.9	%		1,615	$	12.46
South County		1		100.0	%		78,615		72.4	%		505	$	8.87

San Diego County		10		100.0	%		925,855		85.1	%		7,154	$	9.08
Other - Glenview, Illinois		1		100.0	%		37,992		80.6	%		389	$	12.70

INDUSTRIAL CONSOLIDATED TOTAL / WEIGHTED AVERAGE		64		100.0	%		6,258,589		90.6	%		49,054	$	8.65

OFFICE:
Greater San Fernando Valley⁽¹⁾		1		100.0	%		63,305		0.0	%		—	$	0.00

CONSOLIDATED TOTAL / WEIGHTED AVERAGE		65		100.0	%		6,321,894		89.7	%	$	49,054	$	8.65

⁽¹⁾ This office building, located at 2900 N. Madera Road was recently acquired on December 17, 2013. As of February 18, 2014, this property was in escrow for sale. Unconsolidated Joint Ventures:
Camarillo / Oxnard		3		15.0	%		178,261		73.0	%	$	788	$	6.05

UNCONSOLIDATED TOTAL / WEIGHTED AVERAGE		3		15.0	%		178,261		73.0	%	$	788	$	6.06

Total Portfolio:
GRAND TOTAL / WEIGHTED AVERAGE		68		86.5	%		6,500,155		89.2	%	$	49,842	$	8.60

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 18

Occupancy and Leasing Trends

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

Occupancy by County:


	Dec. 31, 2013			Sep. 30, 2013			Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012
Occupancy:
Los Angeles County⁽¹⁾		89.9	%		88.1	%		90.9	%		90.9	%		90.2	%
Orange County		91.7	%		92.6	%		88.1	%		93.4	%		83.5	%
San Bernardino County		87.5	%		85.7	%		82.3	%		83.0	%		84.5	%
Ventura County		97.7	%		97.3	%		97.3	%		99.6	%		95.0	%
San Diego County		85.1	%		83.4	%		83.4	%		63.4	%		64.0	%
Other		80.6	%		69.0	%		67.2	%		75.6	%		85.3	%

Total/Weighted Average⁽²⁾		89.7	%		88.0	%		88.8	%		85.6	%		84.6	%

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

Leasing Activity:

	Three Months Ended
	Dec. 31, 2013			Sep. 30, 2013 ⁽⁴⁾			Jun. 30, 2013			Mar. 31, 2013			Dec. 31, 2012
Leasing Activity (SF): ⁽³⁾
New leases		142,248			143,973			265,394			283,507			201,942
Renewal		244,068			194,978			244,206			337,887			231,655

Gross leasing		386,316			338,951			509,600			621,394			433,597
Expiring leases		309,769			328,098			339,347			425,011			291,409

Net absorption		76,547			10,853			170,253			196,383			142,188
Retention rate		79	%		59	%		72	%		80	%		79	%

Weighted Average Renewal Leasing Spreads:
	Dec. 31, 2013			Sep. 30, 2013			Jun. 30, 2013
Cash Rent Change		3.5	%		(1.1	%)		(2.8	%)
GAAP Rent Change		12.9	%		6.7	%		8.2	%

⁽¹⁾	Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 91.5%.

⁽²⁾	Excluding the December 17, 2013 acquisition of the office building located at 2900 N. Madera Road, the occupancy at December 31, 2013 is 90.6%.

⁽³⁾	Excludes month-to-month tenants.

⁽⁴⁾	Includes Predecessor and Rexford Industrial Realty, Inc. results.

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 19

Leasing Statistics

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

Leasing Activity:


	# Leases Signed		SF of Leasing		Wtd. Avg. Lease Term		Rent Change - Cash			Rent Change - GAAP
Fourth Quarter 2013:
New		38		142,248		3.5		4.5	%		15.2	%
Renewal ⁽¹⁾		53		244,068		2.5		3.3	%		12.4	%

Total/Weighted Average		91		386,316		2.9		3.5	%		12.9	%

Uncommenced Leases by County:


Market	Leased SF		Uncomm. Lease Ann. Base Rent (in thousands)		Total Pro Forma Ann. Base Rent (in thousands)		Pro Forma Occupancy %			Pro Forma Ann. Base Rent per SF
Los Angeles County		14,495	$	104	$	27,908		91.9	%	$	8.54
Orange County		12,713		130		6,281		93.4	%	$	8.98
San Bernardino County		18,004		123		4,594		90.6	%	$	8.73
Ventura County		—		—		3,086		97.7	%	$	7.69
San Diego County		28,347		232		7,386		88.2	%	$	9.04
Other		—		—		389		80.6	%	$	12.70

Total/Weighted Average		73,559	$	589	$	49,643		91.7	%	$	8.65

Lease Expiration Schedule:


Year of Lease Expiration	# of Leases Expiring		Total Rentable SF		Ann. Base Rent (in thousands)		% of Ann. Base Rent			Ann. Base Rent per SF
Available		—		654,016		—		—			—
MTM Tenants		44		106,434	$	905		1.9	%	$	8.51
2013⁽²⁾		9		93,716	$	1,126		2.3	%	$	12.01
2014		334		1,656,034	$	14,090		28.7	%	$	8.51
2015		222		1,153,536	$	9,774		19.9	%	$	8.47
2016		128		834,859	$	7,616		15.5	%	$	9.12
2017		28		665,114	$	4,714		9.6	%	$	7.09
2018		28		471,417	$	3,873		7.9	%	$	8.21
2019		6		64,293	$	674		1.4	%	$	10.48
2020		4		154,526	$	2,612		5.3	%	$	16.90
2021		4		36,388	$	804		1.6	%	$	22.09
2022		1		107,861	$	440		0.9	%	$	4.08
Thereafter		4		323,700	$	2,426		5.0	%	$	7.49

Total Portfolio		812		6,321,894	$	49,054		100.0	%	$	8.65

⁽¹⁾	Over 96% of lease renewals during the quarter achieved flat or positive cash rent growth.

⁽²⁾	Of the nine leases expiring on 12/31/13, seven leases vacated totaling 33,745 SF and $398,352 of annualized base rent, one lease renewed totaling 33,799 SF and $251,472 of annualized base rent and one lease downsized totaling 26,172 SF and $476,028 of annualized base rent.

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Top Tenants and Lease Segmentation

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

Top 10 Tenants:


Tenant	Submarket	Leased SF		% of Total Ann. Base Rent			Ann. Base Rent per SF		Lease Expiration
Warehouse Specialists	LA - San Gabriel Valley		245,961		2.2	%	$	4.32		11/30/2017
State of California	Inland Empire West		58,781		2.1	%	$	17.88		3/31/2020
Biosense	LA - San Gabriel Valley		76,000		2.0	%	$	12.99		10/31/2020
ITT Industries, Inc.	LA - San Gabriel Valley		67,838		1.8	%	$	12.63		9/30/2023
Kingsbridge International	LA - San Fern. Valley		136,065		1.6	%	$	5.88		1/31/2024
Dr. Bonner’s Magic Soaps	San Diego - North		118,597		1.5	%	$	6.24		11/30/2024
Towne, Inc.	OC - Airport		122,060		1.4	%	$	5.73		7/31/2014
Zag America	LA - San Fern. Valley		25,168		1.4	%	$	27.60		12/31/2021
Team Acquisition Corp.	LA - San Fern. Valley		20,442		1.3	%	$	31.19		12/31/2016
L&L Printers Carlsbad	San Diego - North		61,620		1.2	%	$	9.12		2/28/2017

Top 10 Total / Wtd. Avg.			932,532		16.5	%	$	8.68

Lease Segmentation by Size:


Square Feet	Number of Leases		Leased SF		Ann. Base Rent (in thousands)		% of Total Ann. Base Rent			Ann. Base Rent per SF
<4,999		598		1,218,853	$	12,124		24.7	%	$	9.95
5,000 - 9,999		87		600,433		5,520		11.3	%	$	9.19
10,000 - 24,999		82		1,280,151		12,012		24.5	%	$	9.38
25,000 - 49,999		27		888,976		7,746		15.8	%	$	8.71
>50,000		18		1,679,465		11,652		23.7	%	$	6.94

Total / Wtd. Avg.		812		5,667,878	$	49,054		100.0	%	$	8.65

Fourth Quarter 2013

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Capital Expenditure Summary

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

Quarter Ended December 31, 2013:


	Amount			SF		PSF
Tenant Improvements:
New Leases - 1st Generation	$	260,000			78,249	$	3.32
New Leases - 2nd Generation	$	117,000			82,649	$	1.42
Renewals	$	121,000			173,326	$	0.70

Leasing Commissions:
New Leases - 1st Generation	$	110,000			89,166	$	1.23
New Leases - 2nd Generation	$	52,000			63,310	$	0.82
Renewals	$	100,000			141,992	$	0.70

Total Recurring Capex:
Recurring Capex	$	335,000			6,258,589	$	0.05
Recurring Capex % NOI		4.0	%
Recurring Capex % Operating Revenue		2.7	%
Nonrecurring Capex	$	748,000			6,258,589	$	0.12

Year Ended December 31, 2013:

	Amount			SF		PSF
Tenant Improvements:
New Leases - 1st Generation	$	455,000			397,036	$	1.15
New Leases - 2nd Generation	$	245,000			221,601	$	1.11
Renewals	$	168,000			234,019	$	0.72

Leasing Commissions:
New Leases - 1st Generation	$	678,000			393,293	$	1.72
New Leases - 2nd Generation	$	328,000			324,734	$	1.01
Renewals	$	352,000			469,010	$	0.75

Total Recurring Capex:
Recurring Capex⁽¹⁾	$	869,000			5,434,314	$	0.16
Recurring Capex % NOI		2.9	%
Recurring Capex % Operating Revenue		2.1	%
Nonrecurring Capex⁽¹⁾	$	1,708,000			5,434,314	$	0.31

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

Page 22

Properties Under Repositioning

(unaudited results, all figures pro rata except SF)

Acquisition and Investment Detail:

As of December 31, 2013


Property	Ownership %			Total SF presented on a wholly owned basis		Acquisition Date		Occupancy % at December 31, 2013			Purchase Price ($ in MM)		Inv.-to- date ($ in MM)		Projected Total Inv. ($ in MM)
Work In Progress:
3233 Mission Oaks Blvd.		15.0	%		452,111		Jun-12		32	%	$	2.3	$	3.1	$	3.5
Glendale*		100.0	%		38,665		Apr-08		65	%	$	6.0	$	7.7		N/A
1661 240th St.		100.0	%		100,851		May-13		45	%	$	5.0	$	5.2	$	7.6

Grand Total / Wtd. Avg.					591,627				36	%	$	13.3	$	15.9	$	11.1

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Acquisitions and Dispositions Summary

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

Acquisitions:


Date	Property	Address	Submarket	SF		Price ($ in MM)		Occ. % at Acquisition			Occ. % at Dec. 31, 2013
May-11	Vinedo	122-125 North Vinedo Ave.	LA - San Fern. Valley		48,381	$	5.2		100	%		100	%
Aug-11	MacArthur	3441 W MacArthur Blvd.	OC - Airport		122,060	$	8.5		100	%		100	%
Aug-11	Odessa	6701 & 6711 Odessa Ave.	LA - San Fern. Valley		29,544	$	2.8		0	%		100	%
Nov-11	Golden Valley	13914-13932 Valley Blvd.	LA - San Gabriel		58,084	$	3.6		70	%		82	%
Nov-11	Jersey	10700 Jersey Blvd.	Inland Empire West		107,568	$	7.6		80	%		88	%
Dec-11	Shoemaker	14944, 14946 & 14948 Shoemaker Ave.	LA - Mid-counties		85,950	$	5.7		68	%		95	%
Dec-11	Arrow	15705, 15709 Arrow Highway & 5220 Forth St.	LA - San Gabriel		69,592	$	5.5		91	%		97	%
Dec-11	Normandie	20920-20950 Normandie Ave.	LA - South Bay		49,466	$	4.4		73	%		98	%
Dec-11	Paramount	6423-6431 & 6407-6119 Alondra Blvd.	LA - South Bay		30,224	$	2.6		100	%		100	%
Mar-12	Campus	1400 S. Campus Ave.	Inland Empire West		107,861	$	4.8		100	%		100	%
May-12	Zenith	500-560 Zenith Dr.	Illinois		37,992	$	1.6		72	%		81	%
Jun-12	Mission Oaks	3001, 3175 & 3233 Mission Oaks Blvd.	Ventura County		1,188,407	$	59.1		73	%		73	%
Dec-12	Calvert	15041 Calvert St.	LA - San Fern. Valley		81,282	$	5.6		100	%		100	%
Dec-12	Del Norte	701 Del Norte Blvd.	Ventura County		125,514	$	9.5		95	%		92	%
Apr-13	Broadway	18118-18120 S. Broadway	LA - South Bay		78,183	$	5.4		100	%		100	%
Apr-13	Glendale Commerce Center	3350 Tyburn St., 3332 - 3424 N. San Fernando Rd.	LA - San Fern. Valley		473,345	$	56.2		100	%		99	%
Apr-13	Benson	8900-8980 Benson Ave., 5637 Arrow Highway	Inland Empire West		88,146	$	7.2		84	%		82	%
May-13	240th Street	1661 240th St.	LA - South Bay		100,851	$	5.0		39	%		45	%
Jul-13	Orion	8101-8117 Orion Ave.	LA - San Fern. Valley		48,388	$	5.6		90	%		97	%
Aug-13	Tarzana	18310-18330 Oxnard St.	LA - San Fern. Valley		75,288	$	8.4		81	%		88	%
Nov-13	Yorba Linda Business Park	22343-22349 La Palma Ave.	OC - North		115,760	$	12.7		79	%		N/A
Nov-13	The Park	1100-1170 Gilbert St., 2353-2373 La Palma Ave.	OC - North		120,313	$	10.6		85	%		N/A
Dec-13	Bonita Thompson	280 Bonita Ave., 2743 Thompson Creek Rd.	LA - San Gabriel		365,859	$	27.2		100	%		N/A
Dec-13	Madera⁽¹⁾	2900-2950 N. Madera Road	LA - San Fern. Valley		199,370	$	15.8		68	%		N/A
Dec-13	Vanowen	10635 W. Vanowen St.	LA - San Fern. Valley		31,037	$	3.4		100	%		N/A

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

Dispositions:

Date

Property

Address

Submarket

Sale Price

($ in MM)

Reason for Selling

Jan-13

Bonnie Beach

4578 Worth Street

LA - Central

79,370

4.1

User sale

Apr-13

Williams

1950 East Williams Drive

Ventura County

161,682

8.5

Marketed sale

May-13

Glenoaks

9027 Glenoaks Blvd.

LA - San Fern. Valley

14,700

1.7

User sale

May-13

Interstate

2441, 2507, 2515 W. Erie Dr., & 2929 S. Fair Lane

Arizona

83,385

5.0

Non-strategic location

Jun-13

Knollwood

1255 Knollwood Circle

OC - North

25,162

2.8

User sale

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Definitions / Discussion of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Definitions / Discussion of Non-GAAP Financial Measures

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

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

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

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

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

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

Fourth Quarter 2013

Supplemental Financial Reporting Package

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Rexford Industrial Realty, Inc. - FORM 8-K - EX-99.1 - March 13, 2014

Attached files

Rexford Industrial Realty, Inc. Reports