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Section 1: 8-K (8-K)

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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):
February 12, 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 February 12, 2019, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended December 31, 2018, and distributed certain supplemental financial information. On February 12, 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 December 31, 2018 and distributed certain supplemental information. On February 12, 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 February 12, 2019
 
 
 
99.2
 
Fourth Quarter 2018 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.
February 12, 2019
 
/s/ Michael S. Frankel
 
Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 
 
 
Rexford Industrial Realty, Inc.
February 12, 2019
 
/s/ Howard Schwimmer
 
Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)






EXHIBIT INDEX

Exhibit
Number
  
Description
99.1
  
 
 
 
99.2
  



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

 396714214_rexrlogoa50.jpg
REXFORD INDUSTRIAL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS

- 4Q 2018 Net Income Attributable to Common Stockholders of $12.4M, or $0.13 per Diluted Share -
- 4Q 2018 Company Share of Core FFO of $27.2M, Up 35.9% Compared to 4Q 2017 -
- 4Q 2018 Company Share of Core FFO of $0.29 per Diluted Share, Up 11.5% Compared to 4Q 2017 -
- 4Q 2018 Same Property Portfolio NOI Up 9.6% Compared to 4Q 2017 -
- 4Q 2018 GAAP Releasing Spreads of 25.1% and Cash Releasing Spreads of 14.8% -
- Full Year 2018 Net Income Attributable to Common Stockholders of $36.1M, or $0.41 per Diluted Share -
- Full Year 2018 Company Share of Core FFO of $97.6M, Up 41.3% Compared to Full Year 2017 -
- Full Year 2018 Company Share of Core FFO of $1.12 per Diluted Share, Up 16.7% Versus Full Year 2017 -
- Stabilized Same Property Portfolio Ending Occupancy of 98.2% -
- Increases Quarterly Dividend for 2019 by 15.6% to $0.185 Per Share -
- Introduces Core FFO 2019 Guidance Range of $1.16 to $1.20 per Diluted Share -


Los Angeles, California - February 12, 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 fourth quarter and full year 2018.

Fourth Quarter 2018 and Full Year 2018 Financial and Operational Highlights:
Net income attributable to common stockholders of $0.13 per diluted share for the quarter ended December 31, 2018, compared to $0.15 per diluted share last year.
Company share of Core FFO increased 35.9% year-over-year to $27.2 million for the quarter ended December 31, 2018.
Company share of Core FFO per diluted share increased 11.5% year-over-year to $0.29 per diluted share for the quarter ended December 31, 2018.
Total fourth quarter rental revenues of $56.1 million, which represents an increase of 22.6% year-over-year.
Consolidated fourth quarter Portfolio Net Operating Income (NOI) of $42.5 million, which represents an increase of 26.4% year-over-year.
Same Property Portfolio NOI increased 9.6% in the fourth quarter of 2018 compared to the fourth quarter of 2017, driven by an 8.0% increase in Same Property Portfolio total rental revenue and a 3.2% increase in Same Property Portfolio operating expenses. Same Property Portfolio Cash NOI increased 12.4% compared to the fourth quarter of 2017.
Stabilized Same Property Portfolio NOI increased 5.1% in the fourth quarter of 2018 compared to the fourth quarter of 2017.
Stabilized Same Property Portfolio Cash NOI increased 7.8% compared to the fourth quarter of 2017.
Signed new and renewal leases totaling 631,823 rentable square feet. Rental rates on new and renewal leases were 25.1% higher than prior rents on a GAAP basis and 14.8% higher on a cash basis.
Company share of Core FFO increased 41.3% to $97.6 million for the full year 2018 compared to the full year 2017.




Company share of Core FFO per diluted share increased 16.7% to $1.12 per diluted share for the full year 2018 compared to the full year 2017.
At December 31, 2018, the Stabilized Same Property Portfolio occupancy was 98.2% and the Same Property Portfolio occupancy, inclusive of assets in value-add repositioning, was 96.7%.
At December 31, 2018, the consolidated portfolio, including repositioning assets, was 95.5% leased and 95.4% occupied and the consolidated portfolio, excluding repositioning assets aggregating approximately 0.5 million rentable square feet, was 97.6% leased and 97.5% occupied.
During the fourth quarter of 2018, the Company acquired ten industrial properties for a total purchase price of $131.7 million.
On February 11, 2018, the Company declared a quarterly dividend of $0.185 per share, an increase of 15.6% from the prior rate of $0.16 per share.


“Our fourth quarter and full year 2018 results represent a tremendous year for the Company, having achieved Core FFO growth of 41.3% for the full year, equal to 16.7% annual growth on a per share basis,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “Our portfolio continued to produce strong results, with a 10.6% increase in Same Property NOI for the full year. Our Same Property Portfolio Occupancy reached 96.7%, and our leasing spreads, driven by high levels of tenant demand and a scarcity of supply, were 25.1% and 14.8%, on a GAAP and cash basis, respectively. We also completed $132 million of acquisitions during the fourth quarter, bringing our full year total to $493 million of acquisitions comprising over 3 million square feet of high quality industrial property strategically positioned within prime infill Southern California locations. As we continue to capitalize upon our proprietary research, deep market relationships and local knowledge, we believe Rexford Industrial remains exceptionally well-positioned for accretive growth with the potential to drive favorable shareholder returns into the foreseeable future. Further, by maintaining a low-leverage balance sheet with about 16% debt to total enterprise value at year end, our team is poised to capitalize upon emerging value-creation opportunities, both within our existing portfolio as well as through accretive external growth through acquisitions as we continue to mine a robust pipeline of potential investments into future periods. Finally, we are pleased to report that we are increasing our quarterly dividend by 15.6% to $0.185 per share, representing our fourth consecutive year of dividend increases.”

Financial Results:

The Company reported net income attributable to common stockholders of $12.4 million, or $0.13 per diluted share, for the three months ended December 31, 2018, as compared to net income attributable to common stockholders of $11.8 million, or $0.15 per diluted share, for the three months ended December 31, 2017.

The Company reported net income attributable to common stockholders of $36.1 million, or $0.41 per diluted share, for the year ended December 31, 2018, as compared to net income attributable to common stockholders of $34.4 million, or $0.48 per diluted share, for the year ended December 31, 2017. Net income for the year ended December 31, 2018, includes $17.2 million of gains on sale of real estate, as compared to $29.6 million for the year ended December 31, 2017.

The Company reported Company share of Core FFO of $27.2 million, or $0.29 per diluted share of common stock, for the three months ended December 31, 2018, as compared to Company share of Core FFO of $20.0 million, or $0.26 per diluted share of common stock, for the three months ended December 31, 2017. Adjusting for non-core expenses ($0.2 million reported during the fourth quarter of 2018 and $33,000 reported during the fourth quarter of 2017), Company share of FFO was $27.1 million, or $0.29 per diluted share of common stock, for the three months ended December 31, 2018, as compared to Company share of FFO of $20.0 million, or $0.26 per diluted share of common stock, for the three months ended December 31, 2017.

The Company reported Company share of Core FFO of $97.6 million, or $1.12 per diluted share of common stock, for the year ended December 31, 2018, as compared to Company share of Core FFO of $69.1 million, or $0.96 per diluted share of common stock, for the year ended December 31, 2017. Adjusting for non-core expenses ($0.3 million reported during the year ended December 31, 2018 and $0.5 million reported during the year ended December 31, 2017), Company share of FFO was $97.3 million, or $1.11 per diluted share of common stock, for the year ended December 31, 2018, as compared to Company share of FFO of $68.6 million, or $0.96 per diluted share of common stock, for the year ended December 31, 2017.





For the three months ended December 31, 2018, the Company’s Same Property Portfolio NOI increased 9.6% compared to the fourth quarter of 2017, driven by an 8.0% increase in Same Property Portfolio total rental revenue and a 3.2% increase in Same Property Portfolio expenses. Same Property Portfolio Cash NOI increased 12.4% compared to the fourth quarter of 2017. Stabilized Same Property Portfolio NOI increased 5.1% in the fourth quarter of 2018 compared to the fourth quarter of 2017 and Stabilized Same Property Portfolio Cash NOI increased 7.8% in the fourth quarter of 2018 compared to the fourth quarter of 2017.

Operating Results:

During the fourth quarter of 2018, the Company signed 90 new and renewal leases totaling 631,823 rentable square feet. Average rental rates on comparable new and renewal leases were up 25.1% on a GAAP basis and up 14.8% on a cash basis. The Company signed 39 new leases for 168,758 rentable square feet, with GAAP rents up 25.8% compared to the prior in-place leases. The Company signed 51 renewal leases for 463,065 rentable square feet, with GAAP rents up 24.9% compared to the prior in-place leases. For the 39 new leases, cash rents increased 16.0%, and for the 51 renewal leases, cash rents were up 14.4%, 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 December 31, 2018. See below for information regarding the supplemental information package. 

Transaction Activity:

In the fourth quarter 2018, the Company completed seven acquisitions, for an aggregate purchase price of $131.7 million, as detailed below. Additionally, the Company sold a three-building property for $10.4 million.

In October 2018, the Company acquired 1332-1340 Rocky Point Drive, a 31% leased three-building industrial property containing 73,747 square feet on 3.64 acres of land, located in the North County San Diego submarket, for $10.2 million or approximately $138 per square foot.

In November 2018, the Company acquired 6131-6133 Innovation Way, a new 72% leased two-building industrial property containing 114,572 square feet on 8.28 acres of land, located in the North County San Diego submarket, for $24.2 million or approximately $211 per square foot.

In November 2018, the Company acquired 263-321 East Gardena Boulevard, a 100% leased single-tenant industrial building containing 55,238 square feet on 5.41 acres of land, located in the South Bay submarket, for $16.1 million or approximately $68 per land square foot.

In November 2018, the Company acquired 9200-9250 Mason Avenue and 9171 Oso Avenue, a 100% leased four-property industrial complex containing 256,262 square feet on 11.14 acres of land, located in the Greater San Fernando Valley submarket, for $29.5 million or approximately $115 per square foot.

In November 2018, the Company acquired 5593-5595 Fresca Drive, a 100% leased two-tenant industrial building containing 115,200 square feet on 5.7 acres of land, located in the North Orange County submarket, for $14.0 million or approximately $122 per square foot.

In December 2018, the Company acquired 6100 Sheila Street, a 100% leased multi-tenant cold storage industrial building containing 74,527 square feet on 4.3 acres of land, located in the Central LA submarket, for $18.2 million or approximately $245 per square foot.

In December 2018, the Company acquired 14421-14441 Bonelli Street, a 100% leased single-tenant industrial building containing 148,740 square feet on 6.21 acres of land, located in the San Gabriel Valley submarket, for $19.5 million or approximately $131 per square foot.

In December 2018, the Company sold 311, 319, and 329 E. 157th Street, a three-building property containing 48,000 square feet, located in the South Bay submarket for $10.4 million or $217 per square foot.


Balance Sheet:
  
During the quarter ended December 31, 2018, the Company issued 4,012,245 shares of common stock under its at-the-market equity offering program (ATM program). The shares were issued at a weighted average price of $32.58 per share, providing gross proceeds of approximately $130.7 million and net proceeds of approximately $128.8 million. As of December 31, 2018, the current ATM program had approximately $63.4 million of remaining capacity.

As of December 31, 2018, the Company had $761.1 million of outstanding debt, with an average interest rate of 3.44% and an average term-to-maturity of 5.5 years. As of December 31, 2018, $610.7 million, or 80%, of the Company’s outstanding debt was fixed-rate with an average interest rate of 3.31% and an average term-to-maturity of 5.3 years. The remaining $150.4 million, or 20%, of the Company’s outstanding debt was floating-rate, with an average interest rate of LIBOR + 1.50% and an average term-to-maturity of 6.4 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 December 31, 2018, the Company’s debt would be nearly 100% fixed.

Guidance

The Company is introducing its full year 2019 guidance as follows:
Net income attributable to common stockholders within a range of $0.04 to $0.08 per diluted share
Company share of Core FFO within a range of $1.16 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 3.5% to 5.5%
Stabilized Same Property Portfolio NOI growth for the year of 3.0% to 3.5%
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 February 12, 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 February 12, 2019, reflects the acquisition of three properties containing 698,956 rentable square feet that occurred subsequent to December 31, 2018. 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 February 11, 2019, the Company’s Board of Directors declared a dividend in the amount of $0.185 per share for the first quarter of 2019, payable in cash on April 15, 2019, to common stockholders and common unit holders of record as of March 29, 2019. The new divided rate represents a 15.6% increase from the prior rate of $0.16 per share.
 
On February 11, 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 March 29, 2019, to preferred stockholders of record as of March 15, 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, February 13, 2019, at 1:00 p.m. Eastern Time to review fourth quarter results and discuss recent events. The live webcast will be available on the Company’s investor relations website at 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 March 13, 2019, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13686833.


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 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 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, 2017, 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
$
0.04

 
$
0.08

Company share of depreciation and amortization
$
1.12

 
$
1.12

Company share of Core FFO
$
1.16

 
$
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 total revenue from real estate operations including i) rental income, ii) tenant reimbursements and iii) other income less property expenses (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real 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. A calculation of NOI for our Same Property Portfolio, as well as a reconciliation of net income to NOI for our Same Property Portfolio, is set forth below.

Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI i) fair value lease revenue and ii) straight-line rent 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, 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, 2017, and still owned by us as of December 31, 2018. Therefore, we excluded from our Same Properties Portfolio any properties that were acquired or sold during the period from January 1, 2017 through December 31, 2018. The Company’s computation of same property performance may not be comparable to other REITs.

Stabilized Same Property Portfolio: Our Stabilized Same Property Portfolio represents the properties included in our Same Property Portfolio, adjusted to exclude the properties listed in the table below that were under repositioning/lease-up during comparable years.

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 2018 Stabilized Same Property Portfolio excludes the following Same Property Portfolio properties that were in various stages of repositioning or lease-up during 2017 and 2018:
12131 Western Avenue
 
301-445 Figueroa Street
14742-14750 Nelson Avenue
 
3233 Mission Oaks Boulevard
1601 Alton Parkway
 
3880 Valley Boulevard
18118-18120 Broadway Street
 
679-691 South Anderson Street
228th Street
 
9615 Norwalk Boulevard
2700-2722 Fairview Street
 
 
As of December 31, 2018, the difference between our Same Property Portfolio and our Stabilized Same Property Portfolio is 209,031 rentable square feet of space at four of our properties that were classified as repositioning or lease-up. As of December 31, 2017, the difference between our Same Property Portfolio and our Stabilized Same Property Portfolio is space aggregating 397,340 rentable square feet at six of our properties that were in various stages of repositioning or lease-up.
Our 2019 Stabilized Same Property Portfolio will exclude the following 2019 Same Property Portfolio properties that were or will be in various stages of repositioning or lease-up during 2018 and 2019:
14742-14750 Nelson Avenue
 
28903 Avenue Paine
15401 Figueroa Street
 
301-445 Figueroa Street
1601 Alton Parkway
 
3233 Mission Oaks Boulevard
2700-2722 Fairview Street
 
9615 Norwalk Boulevard





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
[email protected]




Rexford Industrial Realty, Inc.
Consolidated Balance Sheets
(In thousands except share data)

 
 
December 31, 2018
 
December 31, 2017
 
(unaudited)
 
 
ASSETS
 
 
 
Land
$
1,298,957

 
$
997,588

Buildings and improvements
1,332,438

 
1,079,746

Tenant improvements
60,024

 
49,692

Furniture, fixtures, and equipment
149

 
167

Construction in progress
24,515

 
34,772

Total real estate held for investment
2,716,083

 
2,161,965

Accumulated depreciation
(228,742
)
 
(173,541
)
Investments in real estate, net
2,487,341

 
1,988,424

Cash and cash equivalents
180,601

 
6,620

Restricted cash

 
250

Rents and other receivables, net
4,944

 
3,664

Deferred rent receivable, net
22,228

 
15,826

Deferred leasing costs, net
14,002

 
12,014

Deferred loan costs, net
1,312

 
1,930

Acquired lease intangible assets, net
55,683

 
49,239

Acquired indefinite-lived intangible
5,156

 
5,156

Interest rate swap asset
8,770

 
7,193

Other assets
6,723

 
6,146

Acquisition related deposits
925

 
2,475

Assets associated with real estate held for sale, net

 
12,436

Total Assets
$
2,787,685

 
$
2,111,373

LIABILITIES & EQUITY
 
 
 
Liabilities
 
 
 
Notes payable
$
757,371

 
$
668,941

Interest rate swap liability
2,351

 
219

Accounts payable, accrued expenses and other liabilities
21,074

 
21,134

Dividends payable
15,938

 
11,727

Acquired lease intangible liabilities, net
52,727

 
18,067

Tenant security deposits
23,262

 
19,521

Prepaid rents
6,539

 
6,267

Liabilities associated with real estate held for sale

 
243

Total Liabilities
879,262

 
746,119

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 December 31, 2018 and December 31, 2017 ($90,000 liquidation preference)
86,651

 
86,651

5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding as of December 31, 2018 and December 31, 2017 ($75,000 liquidation preference)
72,443

 
73,062

Common Stock, $0.01 par value 490,000,000 shares authorized and 96,810,504 and 78,495,882 shares outstanding as of December 31, 2018 and December 31, 2017, respectively
966

 
782

Additional paid in capital
1,798,113

 
1,239,810

Cumulative distributions in excess of earnings
(88,341
)
 
(67,058
)
Accumulated other comprehensive income
6,262

 
6,799

Total stockholders’ equity
1,876,094

 
1,340,046

Noncontrolling interests
32,329

 
25,208

Total Equity
1,908,423

 
1,365,254

Total Liabilities and Equity
$
2,787,685

 
$
2,111,373





Rexford Industrial Realty, Inc.
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)


 
Three Months Ended December 31,
 
Year Ended December 31,
 
2018
 
2017
 
2018
 
2017
RENTAL REVENUES
 
 
 
 
 
 
 
Rental income
$
47,429

 
$
38,691

 
$
177,568

 
$
136,185

Tenant reimbursements
8,462

 
6,757

 
32,195

 
23,363

Other income
234

 
319

 
880

 
869

TOTAL RENTAL REVENUES
56,125

 
45,767

 
210,643

 
160,417

Management, leasing and development services
114

 
113

 
473

 
493

Interest income
769

 

 
1,378

 
445

TOTAL REVENUES
57,008

 
45,880

 
212,494

 
161,355

OPERATING EXPENSES
 
 
 
 
 
 
 
Property expenses
13,642

 
12,152

 
51,671

 
42,139

General and administrative
6,297

 
5,558

 
25,194

 
21,610

Depreciation and amortization
20,671

 
18,767

 
80,042

 
64,852

TOTAL OPERATING EXPENSES
40,610

 
36,477

 
156,907

 
128,601

OTHER EXPENSES
 
 
 
 
 
 
 
Acquisition expenses
166

 
33

 
318

 
454

Interest expense
6,656

 
5,638

 
25,416

 
20,209

TOTAL OTHER EXPENSES
6,822

 
5,671

 
25,734

 
20,663

TOTAL EXPENSES
47,432

 
42,148

 
182,641

 
149,264

Equity in income from unconsolidated real estate entities

 

 

 
11

Gains on extinguishment of debt

 
47

 

 
25

Gains on sale of real estate
5,631

 
10,336

 
17,222

 
29,573

NET INCOME
15,207

 
14,115

 
47,075

 
41,700

Less: net income attributable to noncontrolling interest
(277
)
 
(304
)
 
(865
)
 
(988
)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
14,930

 
13,811

 
46,210

 
40,712

Less: preferred stock dividends
(2,424
)
 
(1,909
)
 
(9,694
)
 
(5,875
)
Less: earnings attributable to participating securities
(93
)
 
(83
)
 
(378
)
 
(410
)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
12,413

 
$
11,819

 
$
36,138

 
$
34,427

Net income attributable to common stockholders per share  basic
$
0.13

 
$
0.15

 
$
0.42

 
$
0.48

Net income attributable to common stockholders per share  diluted
$
0.13

 
$
0.15

 
$
0.41

 
$
0.48

Weighted-average shares of common stock outstanding – basic
93,996

 
77,771

 
86,824

 
71,199

Weighted-average shares of common stock outstanding – diluted
94,488

 
78,228

 
87,336

 
71,599







Rexford Industrial Realty, Inc.
Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Same Property Portfolio Occupancy:
 
 
 
 
 
 
 
December 31, 2018
 
December 31, 2017
 
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
98.5%
 
99.1%
 
95.8%
 
99.2%
 
270 bps
 
(10) bps
Orange County
94.2%
 
96.7%
 
96.9%
 
97.6%
 
(270) bps
 
(90) bps
San Bernardino County
97.3%
 
97.3%
 
99.8%
 
99.8%
 
(250) bps
 
(250) bps
San Diego County
98.6%
 
98.6%
 
96.3%
 
96.3%
 
230 bps
 
230 bps
Ventura County
90.3%
 
96.9%
 
84.7%
 
93.8%
 
560 bps
 
310 bps
Total/Weighted Average
96.7%
 
98.2%
 
95.3%
 
98.1%
 
140 bps
 
10 bps

(1)
Reflects the occupancy of our Same Property Portfolio as of December 31, 2018, adjusted for total space of 209,031 rentable square feet at four properties that were in various stages of repositioning or lease-up as of December 31, 2018.
(2)
Reflects the occupancy of our Same Property Portfolio as of December 31, 2017, adjusted for space aggregating 397,340 rentable square feet at six properties that were in various stages of repositioning or lease-up as of December 31, 2017.

Same Property Portfolio NOI and Cash NOI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
2018
 
2017
 
$ Change
 
% Change
 
2018
 
2017
 
$ Change
 
% Change
Rental income
$
32,765

 
$
30,318

 
$
2,447

 
8.1%
 
$
127,628

 
$
117,110

 
$
10,518

 
9.0%
Tenant reimbursements
5,293

 
4,819

 
474

 
9.8%
 
21,260

 
19,509

 
1,751

 
9.0%
Other income
191

 
287

 
(96
)
 
(33.4)%
 
755

 
753

 
2

 
0.3%
Total rental revenues
38,249

 
35,424

 
2,825

 
8.0%
 
149,643

 
137,372

 
12,271

 
8.9%
Property expenses
9,446

 
9,155

 
291

 
3.2%
 
36,645

 
35,238

 
1,407

 
4.0%
Same Property Portfolio NOI
$
28,803

 
$
26,269

 
$
2,534

 
9.6%
 
$
112,998

 
$
102,134

 
$
10,864

 
10.6%
Straight line rental revenue adjustment
(593
)
 
(1,146
)
 
553

 
(48.3)%
 
(3,395
)
 
(3,807
)
 
412

 
(10.8)%
Amortization of above/below market lease intangibles
(147
)
 
(147
)
 

 
0.0%
 
(537
)
 
(539
)
 
2

 
(0.4)%
Same Property Portfolio Cash NOI
$
28,063

 
$
24,976

 
$
3,087

 
12.4%
 
$
109,066

 
$
97,788

 
$
11,278

 
11.5%






Rexford Industrial Realty, Inc.
Reconciliation of Net Income to NOI, Same Property Portfolio NOI and Same Property Portfolio Cash NOI
(Unaudited and in thousands)


 
Three Months Ended December 31,
 
Year Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net income
$
15,207

 
$
14,115

 
$
47,075

 
$
41,700

Add:
 
 
 
 
 
 
 
General and administrative
6,297

 
5,558

 
25,194

 
21,610

Depreciation and amortization
20,671

 
18,767

 
80,042

 
64,852

Acquisition expenses
166

 
33

 
318

 
454

Interest expense
6,656

 
5,638

 
25,416

 
20,209

Deduct:
 
 
 
 
 
 
 
Management, leasing and development services
114

 
113

 
473

 
493

Interest income
769

 

 
1,378

 
445

Equity in income from unconsolidated real estate entities

 

 

 
11

Gain on extinguishment of debt

 
47

 

 
25

Gains on sale of real estate
5,631

 
10,336

 
17,222

 
29,573

Net operating income (NOI)
$
42,483

 
$
33,615

 
$
158,972

 
$
118,278

Non-Same Property Portfolio operating revenues
(17,876
)
 
(10,343
)
 
(61,000
)
 
(23,045
)
Non-Same Property Portfolio property expenses
4,196

 
2,997

 
15,026

 
6,901

Same Property Portfolio NOI
$
28,803

 
$
26,269

 
$
112,998

 
$
102,134

Straight line rental revenue adjustment
(593
)
 
(1,146
)
 
(3,395
)
 
(3,807
)
Amortization of above/below market lease intangibles
(147
)
 
(147
)
 
(537
)
 
(539
)
Same Property Portfolio Cash NOI
$
28,063

 
$
24,976

 
$
109,066

 
$
97,788






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 December 31,
 
Year Ended December 31,
 
2018
 
2017
 
2018
 
2017
Net income
$
15,207

 
$
14,115

 
$
47,075

 
$
41,700

Add:
 
 
 
 
 

 
 

Depreciation and amortization
20,671

 
18,767

 
80,042

 
64,852

Deduct:
 
 
 
 
 
 
 
Gains on sale of real estate
5,631

 
10,336

 
17,222

 
29,573

Gain on acquisition of unconsolidated joint venture property

 

 

 
11

Funds From Operations (FFO)
$
30,247

 
$
22,546

 
$
109,895

 
$
76,968

Less: preferred stock dividends
(2,424
)
 
(1,909
)
 
(9,694
)
 
(5,875
)
Less: FFO attributable to noncontrolling interest(1)
(602
)
 
(506
)
 
(2,295
)
 
(1,914
)
Less: FFO attributable to participating securities(2)
(166
)
 
(138
)
 
(642
)
 
(546
)
Company share of FFO
$
27,055

 
$
19,993

 
$
97,264

 
$
68,633

 
 
 
 
 
 
 
 
Company Share of FFO per common share - basic
$
0.29

 
$
0.26

 
$
1.12

 
$
0.96

Company Share of FFO per common share - diluted
$
0.29

 
$
0.26

 
$
1.11

 
$
0.96

 
 
 
 
 
 
 
 
FFO
$
30,247

 
$
22,546

 
$
109,895

 
$
76,968

Adjust:
 
 
 
 
 
 
 
Acquisition expenses
166

 
33

 
318

 
454

Core FFO
$
30,413

 
$
22,579

 
$
110,213

 
$
77,422

Less: preferred stock dividends
(2,424
)
 
(1,909
)
 
(9,694
)
 
(5,875
)
Less: Core FFO attributable to noncontrolling interest(1)
(606
)
 
(507
)
 
(2,302
)
 
(1,927
)
Less: Core FFO attributable to participating securities(2)
(167
)
 
(138
)
 
(645
)
 
(549
)
Company share of Core FFO
$
27,216

 
$
20,025

 
$
97,572

 
$
69,071

 
 
 
 
 
 
 
 
Company share of Core FFO per common share - basic
$
0.29

 
$
0.26

 
$
1.12

 
$
0.97

Company share of Core FFO per common share - diluted
$
0.29

 
$
0.26

 
$
1.12

 
$
0.96

 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding – basic
93,996

 
77,771

 
86,824

 
71,199

Weighted-average shares of common stock outstanding – diluted
94,488

 
78,228

 
87,336

 
71,599


(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.


(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit
Exhibit 99.2

396714214_capturea01.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 2017 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 21, 2018. 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 2018
Supplemental Financial Reporting Package
Page 2

 396714214_logo3a08.jpg
 


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.

 
Fourth Quarter 2018
Supplemental Financial Reporting Package
Page 3

 396714214_logo3a08.jpg
 


Financial and Portfolio Highlights and Common Stock Data. (1)
 
 
(in thousands except share and per share data and portfolio statistics)

 
Three Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Financial Results:
 
 
 
 
 
 
 
 
 
Total rental revenues
$
56,125

 
$
54,469

 
$
51,616

 
$
48,433

 
$
45,767

Net income
$
15,207

 
$
8,965

 
$
7,819

 
$
15,084

 
$
14,115

Net Operating Income (NOI)
$
42,483

 
$
41,175

 
$
38,841

 
$
36,473

 
$
33,615

Company share of Core FFO
$
27,216

 
$
26,050

 
$
22,882

 
$
21,424

 
$
20,025

Company share of Core FFO per common share - diluted
$
0.29

 
$
0.28

 
$
0.27

 
$
0.27

 
$
0.26

Adjusted EBITDA
$
40,348

 
$
38,003

 
$
36,784

 
$
32,306

 
$
30,675

Dividend declared per common share
$
0.160

 
$
0.160

 
$
0.160

 
$
0.160

 
$
0.145

Portfolio Statistics:
 
 
 
 
 
 
 
 
 
Portfolio SF - consolidated
21,295,443

 
20,505,157

 
20,213,729

 
18,741,304

 
18,476,809

Ending occupancy - consolidated portfolio
95.4
%
 
95.1
%
 
95.2
%
 
95.2
%
 
95.5
%
Stabilized occupancy - consolidated portfolio
97.5
%
 
97.6
%
 
98.1
%
 
97.7
%
 
98.2
%
Leasing spreads - GAAP
25.1
%
 
32.2
%
 
35.5
%
 
25.3
%
 
27.7
%
Leasing spreads - cash
14.8
%
 
21.1
%
 
23.9
%
 
14.9
%
 
18.9
%
Same Property Performance:
 
 
 
 
 
 
 
 
 
Same Property Portfolio SF
14,106,629

 
14,106,629

 
14,040,668

 
14,040,668

 
14,040,668

Same Property Portfolio ending occupancy
96.7
%
 
97.1
%
 
96.1
%
 
95.1
%
 
95.3
%
Same Property Portfolio NOI growth(2)
9.6
%
 
12.6
%
 
10.5
%
 
9.3
%
 
n/a

Same Property Portfolio Cash NOI growth(2)
12.4
%
 
14.8
%
 
9.9
%
 
8.3
%
 
n/a

Stabilized Same Property Portfolio ending occupancy
98.2
%
 
98.7
%
 
98.6
%
 
97.7
%
 
98.1
%
Stabilized Same Property Portfolio NOI growth(2)
5.1
%
 
8.7
%
 
7.7
%
 
7.4
%
 
n/a

Stabilized Same Property Portfolio Cash NOI growth(2)
7.8
%
 
11.6
%
 
9.6
%
 
8.0
%
 
n/a

Capitalization:
 
 
 
 
 
 
 
 
 
Common stock price at quarter end
$
29.47

 
$
31.96

 
$
31.39

 
$
28.79

 
$
29.16

Common shares issued and outstanding
96,610,106

 
92,497,666

 
90,848,198

 
80,441,338

 
78,305,187

Total shares and units issued and outstanding at period end (3)
99,025,917

 
94,500,770

 
92,861,762

 
82,482,513

 
80,323,432

Weighted average shares outstanding - diluted
94,487,773

 
91,945,206

 
83,494,825

 
79,196,060

 
78,227,824

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
$
3,083,294

 
$
3,185,245

 
$
3,079,931

 
$
2,539,672

 
$
2,507,231

Total consolidated debt
$
761,116

 
$
761,154

 
$
761,192

 
$
662,425

 
$
671,657

Total combined market capitalization (net debt plus equity)
$
3,663,809

 
$
3,762,495

 
$
3,678,419

 
$
3,186,472

 
$
3,172,268

Ratios:
 
 
 
 
 
 
 
 
 
Net debt to total combined market capitalization
15.8
%
 
15.3
%
 
16.3
%
 
20.3
%
 
21.0
%
Net debt to Adjusted EBITDA (quarterly results annualized)
3.6x

 
3.8x

 
4.1x

 
5.0x

 
5.4x

(1)
For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section and reconciliation section beginning on page 25 and page 8 of this report, respectively.
(2)
Represents the year over year percentage change in NOI and Cash NOI for the Same Property Portfolio and Stabilized Same Property Portfolio. For comparability, NOI growth and Cash NOI growth for Q1’18, Q2’18 and Q3’18 has been restated to remove the results of 311 East 157th Street, 329 East 157th Street and 319 East 157th Street which were sold during Q4’18. See page 22 for a list of dispositions completed during 2018.
(3)
Includes the following number of OP Units and vested LTIP units held by noncontrolling interests: 2,415,811 (Dec 31, 2018), 2,003,104 (Sep 30, 2018), 2,013,564 (Jun 30, 2018), 2,041,175 (Mar 31, 2018) and 2,018,245 (Dec 31, 2017). Excludes the following number of shares of unvested restricted stock: 200,398 (Dec 31, 2018), 209,214 (Sep 30, 2018), 213,867 (Jun 30, 2018), 226,451 (Mar 31, 2018) and 190,695 (Dec 31, 2017). Excludes unvested LTIP units and unvested performance units.

 
Fourth Quarter 2018
Supplemental Financial Reporting Package
Page 4

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Consolidated Balance Sheets.
 
 
 
 
(unaudited and in thousands)
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
ASSETS
 
 
 
 
 
 
 
 
 
Land
$
1,298,957

 
$
1,218,386

 
$
1,199,633

 
$
1,020,652

 
$
997,588

Buildings and improvements
1,332,438

 
1,253,935

 
1,229,100

 
1,098,695

 
1,079,746

Tenant improvements
60,024

 
54,808

 
53,531

 
50,998

 
49,692

Furniture, fixtures, and equipment
149

 
151

 
151

 
151

 
167

Construction in progress
24,515

 
50,367

 
44,631

 
45,688

 
34,772

  Total real estate held for investment
2,716,083

 
2,577,647

 
2,527,046

 
2,216,184

 
2,161,965

Accumulated depreciation
(228,742
)
 
(214,680
)
 
(200,006
)
 
(186,234
)
 
(173,541
)
Investments in real estate, net
2,487,341

 
2,362,967

 
2,327,040

 
2,029,950

 
1,988,424

Cash and cash equivalents
180,601

 
183,904

 
162,704

 
15,625

 
6,620

Restricted cash

 

 

 
4,211

 
250

Rents and other receivables, net
4,944

 
5,042

 
3,920

 
3,328

 
3,664

Deferred rent receivable, net
22,228

 
20,770

 
19,432

 
17,766

 
15,826

Deferred leasing costs, net
14,002

 
13,446

 
12,600

 
12,097

 
12,014

Deferred loan costs, net
1,312

 
1,467

 
1,621

 
1,775

 
1,930

Acquired lease intangible assets, net(1)
55,683

 
53,402

 
57,054

 
45,876

 
49,239

Acquired indefinite-lived intangible
5,156

 
5,156

 
5,156

 
5,156

 
5,156

Interest rate swap asset
8,770

 
13,851

 
13,036

 
11,294

 
7,193

Other assets
6,723

 
7,508

 
8,216

 
5,961

 
6,146

Acquisition related deposits
925

 
1,325

 
1,600

 
4,525

 
2,475

Assets associated with real estate held for sale, net(2)

 

 

 
8,300

 
12,436

Total Assets
$
2,787,685


$
2,668,838

 
$
2,612,379

 
$
2,165,864

 
$
2,111,373

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 

 
 
Notes payable
$
757,371

 
$
757,218

 
$
757,064

 
$
659,417

 
$
668,941

Interest rate swap liability
2,351

 

 

 

 
219

Accounts payable, accrued expenses and other liabilities
21,074

 
30,411

 
19,683

 
21,441

 
21,134

Dividends payable
15,938

 
15,214

 
14,952

 
13,294

 
11,727

Acquired lease intangible liabilities, net(3)
52,727

 
52,289

 
53,939

 
17,783

 
18,067

Tenant security deposits
23,262

 
21,888

 
20,534

 
19,936

 
19,521

Prepaid rents
6,539

 
6,424

 
6,374

 
5,540

 
6,267

Liabilities associated with real estate held for sale(2)

 

 

 
132

 
243

Total Liabilities
879,262

 
883,444

 
872,546

 
737,543

 
746,119

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

 
73,062

Common stock
966

 
924

 
908

 
804

 
782

Additional paid in capital
1,798,113

 
1,666,339

 
1,614,650

 
1,297,391

 
1,239,810

Cumulative distributions in excess of earnings
(88,341
)
 
(85,358
)
 
(76,926
)
 
(67,622
)
 
(67,058
)
Accumulated other comprehensive income
6,262

 
13,558

 
12,753

 
11,014

 
6,799

Total stockholders’ equity
1,876,094

 
1,754,557

 
1,710,479

 
1,400,681

 
1,340,046

Noncontrolling interests
32,329

 
30,837

 
29,354

 
27,640

 
25,208

Total Equity
1,908,423

 
1,785,394

 
1,739,833

 
1,428,321

 
1,365,254

Total Liabilities and Equity
$
2,787,685

 
$
2,668,838

 
$
2,612,379

 
$
2,165,864

 
$
2,111,373

(1)
Includes net above-market tenant lease intangibles of $4,647 (December 31, 2018), $4,453 (September 30, 2018), $4,692 (June 30, 2018), $4,899 (March 31, 2018) and $5,223 (December 31, 2017).
(2)
At March 31, 2018, the properties located at 1910 Archibald Avenue and 1920 Archibald Avenue were classified as held for sale. At December 31, 2017, the properties located at 700 Allen Avenue, 1851 & 1830 Flower Street and 8900-8980 Benson Avenue were classified as held for sale.
(3)
Includes net below-market tenant lease intangibles of $52,610 (December 31, 2018), $52,164 (September 30, 2018), $53,806 (June 30, 2018), $17,642 (March 31, 2018) and $17,919 (December 31, 2017).

 
Fourth Quarter 2018
Supplemental Financial Reporting Package
Page 5

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Consolidated Statements of Operations.
 
 
Quarterly Results
 
(unaudited and in thousands, except share and per share data)
 
Three Months Ended
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
Rental Revenues
 
 
 
 
 
 
 
 
 
Rental income
$
47,429

 
$
45,661

 
$
43,567


$
40,911

 
$
38,691

Tenant reimbursements
8,462

 
8,508

 
7,932


7,293

 
6,757

Other income
234

 
300

 
117


229

 
319

Total Rental Revenues
56,125

 
54,469

 
51,616


48,433

 
45,767

Management, leasing, and development services
114

 
116

 
140


103

 
113

Interest income
769

 
609

 



 

Total Revenues
57,008

 
55,194

 
51,756


48,536

 
45,880

Operating Expenses
 
 
 
 


 
 
 
Property expenses
13,642

 
13,294

 
12,775


11,960

 
12,152

General and administrative
6,297

 
6,229

 
6,506


6,162

 
5,558

Depreciation and amortization
20,671

 
20,144

 
19,775


19,452

 
18,767

Total Operating Expenses
40,610

 
39,667

 
39,056


37,574

 
36,477

Other Expenses
 
 
 
 


 
 
 
Acquisition expenses
166

 
106

 
37


9

 
33

Interest expense
6,656

 
6,456

 
6,452


5,852

 
5,638

Total Other Expenses
6,822

 
6,562

 
6,489


5,861

 
5,671

Total Expenses
47,432

 
46,229

 
45,545


43,435

 
42,148

Gain on extinguishment of debt

 

 



 
47

Gains on sale of real estate
5,631

 

 
1,608


9,983

 
10,336

Net Income
15,207

 
8,965

 
7,819


15,084

 
14,115

Less: net income attributable to noncontrolling interest
(277
)
 
(141
)
 
(129
)

(318
)
 
(304
)
Net income attributable to Rexford Industrial Realty, Inc.
14,930

 
8,824

 
7,690


14,766

 
13,811

Less: preferred stock dividends
(2,424
)
 
(2,423
)
 
(2,424
)

(2,423
)
 
(1,909
)
Less: earnings allocated to participating securities
(93
)
 
(94
)
 
(94
)

(97
)
 
(83
)
Net income attributable to common stockholders
$
12,413

 
$
6,307

 
$
5,172


$
12,246

 
$
11,819

 
 
 
 
 



 

Earnings per Common Share
 
 
 
 



 

Net income attributable to common stockholders per share - basic
$
0.13

 
$
0.07

 
$
0.06


$
0.16

 
$
0.15

Net income attributable to common stockholders per share - diluted
$
0.13

 
$
0.07

 
$
0.06


$
0.15

 
$
0.15

 
 
 
 
 


 
 
 
Weighted average shares outstanding - basic
93,995,846
 
91,463,594
 
82,924,208
 
78,694,161
 
77,771,084
Weighted average shares outstanding - diluted
94,487,773
 
91,945,206
 
83,494,825
 
79,196,060
 
78,227,824


 
Fourth Quarter 2018
Supplemental Financial Reporting Package
Page 6

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

 
Three Months Ended December 31,
 
Year Ended December 31,
 
2018
 
2017
 
2018
 
2017
Rental Revenues
 
 
 
 
 
 
 
Rental income
$
47,429

 
$
38,691

 
$
177,568

 
$
136,185

Tenant reimbursements
8,462

 
6,757

 
32,195

 
23,363

Other income
234

 
319

 
880

 
869

Total Rental Revenues
56,125

 
45,767

 
210,643

 
160,417

Management, leasing, and development services
114

 
113

 
473

 
493

Interest income
769

 

 
1,378

 
445

Total Revenues
57,008

 
45,880

 
212,494

 
161,355

Operating Expenses
 
 
 
 
 
 
 
Property expenses
13,642

 
12,152

 
51,671

 
42,139

General and administrative
6,297

 
5,558

 
25,194

 
21,610

Depreciation and amortization
20,671

 
18,767

 
80,042