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Section 1: 8-K (8-K)

rexr-20201020
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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): October 20, 2020
REXFORD INDUSTRIAL REALTY, INC.
(Exact name of registrant as specified in its charter) 
 
Maryland001-3600846-2024407
(State or other jurisdiction of
incorporation)
(Commission File Number)(IRS Employer Identification No.)
11620 Wilshire Boulevard, Suite 1000
 Los Angeles
California90025
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (310966-1680

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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolsName of each exchange on which registered
Common Stock, $0.01 par valueREXRNew York Stock Exchange
5.875% Series A Cumulative Redeemable Preferred StockREXR-PANew York Stock Exchange
5.875% Series B Cumulative Redeemable Preferred StockREXR-PBNew York Stock Exchange
5.625% Series C Cumulative Redeemable Preferred StockREXR-PCNew York Stock Exchange
 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
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.



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 20, 2020, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended September 30, 2020, and distributed certain supplemental financial information. On October 20, 2020, 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 September 30, 2020 and distributed certain supplemental information. On October 20, 2020, 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
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




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.
October 20, 2020
 
/s/ Michael S. Frankel
 Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 Rexford Industrial Realty, Inc.
October 20, 2020
 
/s/ Howard Schwimmer
 Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)


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Section 2: EX-99.1 (EX-99.1)

Document
Exhibit 99.1
405625976_rexlogo11520a051.jpg
REXFORD INDUSTRIAL ANNOUNCES THIRD QUARTER 2020 FINANCIAL RESULTS

Los Angeles, California - October 20, 2020 - Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust (“REIT”) focused on creating value by investing in and operating industrial properties in Southern California infill markets, today announced financial and operating results for the third quarter of 2020.

Third Quarter 2020 Financial and Operational Highlights:
Net income attributable to common stockholders of $25.9 million, or $0.21 per diluted share, as compared to $9.7 million, or $0.09 per diluted share, for the third quarter of last year.
Company share of Core FFO of $40.6 million, an increase of 19.8% as compared to the third quarter 2019.
Company share of Core FFO per diluted share of $0.33, an increase of 6.5% as compared to the third quarter 2019.
Consolidated Portfolio Net Operating Income (NOI) of $62.9 million, an increase of 23.8% as compared to the third quarter 2019.
Consolidated Portfolio Cash NOI of $57.1 million, an increase of 22.2% as compared to the third quarter 2019.
Stabilized Same Property Portfolio GAAP NOI increased 4.4% and Stabilized Same Property Portfolio Cash NOI increased 5.0% as compared to the third quarter 2019.
Stabilized Same Property Portfolio occupancy at quarter end of 98.4%.
Comparable rental rates on approximately 1.6 million rentable square feet of new and renewal leases were 26.8% higher than prior rents on a GAAP basis and 17.4% higher on a cash basis.
Acquired five properties for an aggregate purchase price of $68.7 million and, post-quarter end, acquired one additional property for a purchase price of $22.1 million.
Sold three industrial properties for an aggregate sales price of $44.2 million.
Ended the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 9.7%.
Increased Core FFO 2020 guidance range to $1.29 to $1.31 per diluted share.

“Our third quarter results demonstrate the consistent performance of Rexford’s focused strategy and the stability of our infill Southern California tenant base within the nation’s largest, lowest vacancy and highest demand industrial market,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “The strength of our third quarter rent collections, which performed very near strong pre-pandemic levels, reflect our tenants’ superior aggregate credit quality. Despite the ongoing challenges presented by the COVID-19 pandemic and the unique California municipal orders allowing many tenants impacted by COVD-19 to defer their rent, we continue to benefit from scarce and diminishing supply driving an ongoing supply-demand imbalance fueled by growing tenant demand from a range of industry sectors including the dramatic growth in ecommerce. Our portfolio occupancy is above pre-pandemic levels, with leasing volumes and spreads also tracking at peak, pre-pandemic levels. We also continue to drive accretive external growth, with $374.6 million of acquisitions completed year to date and a favorable pipeline of additional acquisition opportunities currently in process. Our fortress-like balance sheet and strong liquidity position the company to capitalize on growth opportunities and to protect against ongoing market uncertainty. We are excited at the prospects ahead to continue to create long term shareholder value.”



Financial Results:

The Company reported net income attributable to common stockholders of $25.9 million, or $0.21 per diluted share, for the three months ended September 30, 2020, as compared to net income attributable to common stockholders of $9.7 million, or $0.09 per diluted share, for the three months ended September 30, 2019. Net income for the three months ended September 30, 2020 includes $13.7 million of gains on sale of real estate, as compared to $0.9 million for the three months ended September 30, 2019.

The Company reported net income attributable to common stockholders of $48.1 million, or $0.40 per diluted share, for the nine months ended September 30, 2020, as compared to net income attributable to common stockholders of $30.6 million, or $0.29 per diluted share, for the nine months ended September 30, 2019. Net income for the nine months ended September 30, 2020 includes $13.7 million of gains on sale of real estate, as compared to $5.7 million for the nine months ended September 30, 2019.

The Company reported Company share of Core FFO of $40.6 million, or $0.33 per diluted share of common stock, for the three months ended September 30, 2020, as compared to Company share of Core FFO of $33.9 million, or $0.31 per diluted share of common stock, for the three months ended September 30, 2019. Amounts are adjusted for non-core expenses of $0.1 million for the three months ended September 30, 2020, and $0.1 million for the three months ended September 30, 2019.

The Company reported Company share of Core FFO of $116.9 million, or $0.98 per diluted share of common stock, for the nine months ended September 30, 2020, as compared to Company share of Core FFO of $95.3 million, or $0.91 per diluted share of common stock, for the nine months ended September 30, 2019. Amounts are adjusted for non-core expenses of $0.1 million for the nine months ended September 30, 2020, and $0.2 million for the nine months ended September 30, 2019.

For the three months ended September 30, 2020, the Company’s consolidated portfolio NOI increased 23.8% compared to the three months ended September 30, 2019, and the Company’s consolidated portfolio Cash NOI increased 22.2% compared to the three months ended September 30, 2019.

For the nine months ended September 30, 2020, the Company’s consolidated portfolio NOI increased 26.2% compared to the nine months ended September 30, 2019, and the Company’s consolidated portfolio Cash NOI increased 22.7% compared to the nine months ended September 30, 2019.

For the three months ended September 30, 2020, the Company’s Stabilized Same Property Portfolio NOI increased 4.4% compared to the third quarter of 2019, driven by a 5.0% increase in Stabilized Same Property Portfolio rental income and a 6.9% increase in Stabilized Same Property Portfolio expenses. Stabilized Same Property Portfolio Cash NOI increased 5.0% compared to the third quarter of 2019.

For the nine months ended September 30, 2020, the Company’s Stabilized Same Property Portfolio NOI increased 4.0% compared to the nine months ended September 30, 2019, driven by a 4.1% increase in Stabilized Same Property Portfolio rental income and a 4.5% increase in Stabilized Same Property Portfolio expenses. Stabilized Same Property Portfolio Cash NOI increased 3.6% compared to the nine months ended September 30, 2019.

Operating Results:

During the third quarter of 2020, the Company signed 101 new and renewal leases totaling 1,562,179 rentable square feet. Average rental rates on comparable new and renewal leases were up 26.8% on a GAAP basis and up 17.4% on a cash basis. The Company signed 52 new leases for 987,176 rentable square feet, with GAAP rents up 38.9% and cash rents up 25.5% compared to the prior in-place leases. The Company signed 49 renewal leases for 575,003 rentable square feet, with GAAP rents up 16.7% and cash rents up 10.5% compared to the prior in-place leases.

At September 30, 2020, the Company’s Stabilized Same Property Portfolio occupancy was 98.4%. At September 30, 2020, the Company’s consolidated portfolio, excluding value-add repositioning assets, was 97.9% occupied and 97.9% leased, and the Company’s consolidated portfolio, including value-add repositioning assets, was 97.2% occupied and 97.3% leased.

Transaction Activity:




During the third quarter of 2020, the Company acquired five properties for an aggregate purchase price of $68.7 million, as detailed below. Additionally, the Company sold three properties for an aggregate sales price of $44.2 million.

Acquisitions in the third quarter include:
15650-15700 South Avalon Boulevard, a 100% leased two-building industrial property containing 166,088 square feet on 7.2 acres of land, located in the Los Angeles – South Bay submarket, for $28.1 million or $169 per square foot. We intend to reposition the property after a short-term leaseback, removing one building to create a modern-feature, low coverage logistics facility, with extensive dock loading and an oversized container yard. The projected stabilized yield on total costs is 5.1%.
A portfolio of three 100% leased industrial buildings which the Company intends to reposition, Penrose, Fleetwood and Tuxford Streets, containing 207,374 square feet on 8.4 acres of land, located in the Los Angeles — San Fernando Valley submarket, for $35.1 million or $169 per square foot. The initial yield of 3.1% is projected to increase to 5.7% on total costs following stabilization of the repositioning.
12133 Greenstone Avenue, a 100% leased single-tenant storage yard containing a 12,586 square foot truck terminal building on 4.8 acres of land, located in the Los Angeles – Mid Counties submarket, for $5.5 million or $26 per land square foot. The property is leased short-term and upon lease expiration the site will be fully upgraded and modernized. The projected stabilized yield on total costs is 6.5%.

Dispositions in the third quarter include:
3927 Oceanic Drive, a vacant single-tenant building containing 54,740 square feet, located in the San Diego – North submarket, for $10.3 million or $188 per square foot.
121 West 33rd Street, a 97% leased multi-tenant building containing 76,701 square feet, located in the San Diego – South submarket, for $13.5 million or $176 per square foot.
2700-2722 South Fairview, a 100% leased two-tenant building containing 116,575 square feet, located in the Orange County – Airport submarket, for $20.4 million or $175 per square foot.

Subsequent to the third quarter of 2020, the Company acquired 12744 San Fernando Road, located in the Los Angeles – Greater San Fernando Valley submarket, for $22.1 million or $157 per square foot. The property contains 140,840 square feet on 6.5 acres of land and is leased short term. At lease expiration the property will be redeveloped with a 144,000 SF new warehouse/distribution facility. The projected stabilized yield on total costs is 4.7%.

Balance Sheet:
The Company ended the third quarter with $786 million in liquidity, including $286 million in cash and restricted cash and $500 million available under its unsecured revolving credit facility. As of September 30, 2020, the Company had $908.0 million of outstanding debt, with an average interest rate of 3.47% and an average term-to-maturity of 4.8 years. The Company has no debt maturities until 2022.

During the quarter ended September 30, 2020, the Company did not issue any shares of common stock under its at-the-market equity offering program (ATM program). As of September 30, 2020, the current ATM program had approximately $259.8 million of remaining capacity.

Dividends:

On October 19, 2020, the Company’s Board of Directors declared a dividend in the amount of $0.215 per share for the fourth quarter of 2020, payable in cash on January 15, 2021, to common stockholders and common unit holders of record as of December 31, 2020.

On October 19, 2020, the Company’s Board of Directors declared a quarterly dividend of $0.367188 per share of its Series A Cumulative Redeemable Preferred Stock, a quarterly dividend of $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative Redeemable Preferred Stock, in each case, payable in cash on December 31, 2020, to preferred stockholders of record as of December 15, 2020.




COVID-19 Impact on Operations (As of October 19, 2020)

In response to COVID-19, most California municipalities in the markets in which the Company owns properties have implemented eviction moratoriums and granted tenants impacted by COVID-19 the unilateral right to defer rent while the emergency orders are in effect, with repayment generally mandated within six months after the end of the local emergency. The majority of those orders were extended and remain in place. A number of the Company’s tenants have utilized these local government mandates authorizing deferral of rent. While the Company is currently unable to completely estimate the impact that COVID-19 and these emergency orders will have on its financial condition and results of operations for the remainder of 2020, as of October 19, 2020, the Company has proactively worked with its tenants and has seen the following impact on its portfolio (using tenant counts and In-Place Annualized Base Rent (“ABR”) as of September 30, 2020):
The Company had 1,478 leases representing in-place annualized base rent (“ABR”) of $274.6 million. ABR is defined/calculated as the monthly contractual base rent per the leases, excluding any rent abatements, as of September 30, 2020, multiplied by 12.
During the quarter, the Company executed rent relief agreements, which comprise application of security deposits, acceleration of deposits, and deferral of base rent with 27 tenants. Of the rent relief agreements executed, 14 tenants received deferred base rent of $0.7 million or 0.2% of ABR. To date, the Company has executed rent relief agreements with 270 tenants, including 118 tenants receiving deferred base rent of $4.6 million or 1.7% of ABR. See the table below for a summary of rent relief provided to tenants applicable to the second and third quarters of 2020 and October 2020.

The following table sets forth the following information regarding contractual rent: (i) amount billed, (ii) percentage collected prior to the impact of consummated rent relief agreements, (iii) the amount of rent relief provided to tenants by the (a) application of security deposits, (b) acceleration of future existing contractual rent concessions and (c) deferral of contractual base rent and (iv) percentage collected after adjusting for rent relief provided by rent relief agreements.
Rent Relief
Period
Contractual Billings(1)
% of Contractual Billings Collected(2)
Security DepositsAcceleration of Concessions
Deferral of Base Rent(3)
Total
% of Contractual Billings Collected after Relief(4)
April 2020$26,165 86.8 %$2,357 $337 $589 $3,283 99.2 %
May 2020$25,665 84.4 %1,389 369 1,825 3,583 98.1 %
June 2020$25,231 91.6 %460 119 1,221 1,800 98.7 %
Total Q2-2020$77,061 87.6 %$4,206 $825 $3,635 
(5)
$8,666 98.7 %
July 2020$25,626 96.6 %$228 $— $309 $537 98.7 %
August 2020$26,250 97.1 %$31 $— $222 253 98.0 %
September 2020$26,469 96.7 %$113 $— $155 268 97.7 %
Total Q3-2020(6)
$78,345 96.8 %$372 $ $686 $1,058 98.1 %
October 2020(6)
$27,737 91.7 %$— $— $62 $62 91.9 %
***Reflects collections through October 19, 2020 for all months noted above***
(1)Contractual Billings include contractual base rent and tenant reimbursements (including prior year recoverable expense reconciliation adjustments) charged to in-place tenants before the impact of COVID-19 related rent relief agreements.
(2)Represents the cash collection percentage of Contractual Billings.
(3)The typical deferral period is approximately 1.5 months with repayment generally scheduled to begin in the third or fourth quarter of 2020.
(4)Represents the cash collection percentage of Contractual Billings after adjusting for rent relief provided by executed rent relief agreements.
(5)During the second quarter of 2020, $96,000 of rent relief was provided to a tenant in the form of a base rent deferral



with repayment scheduled to begin in the fourth quarter of 2020. During the third quarter of 2020, this base rent deferral was waived in connection with the execution of an early renewal lease.
(6)The following table provides a breakdown of third quarter 2020 and October 2020 Contractual Billings between regular billings and Covid-19 deferral billings and percentage collected through October 19, 2020:
Q3-2020October 2020
Contractual Billings% of Contractual Billings CollectedContractual Billings% of Contractual Billings Collected
Regular Billings$78,185 96.8 %$26,207 92.2 %
Covid-19 Deferral Billings160 100.0 %1,530 83.7 %
Total$78,345 $27,737 

Guidance:

While the full economic impact of the COVID-19 pandemic and efforts to contain its spread, as well as the impact of
local California government mandates enabling some tenants impacted by COVID-19 to unilaterally defer rent, are difficult to predict or quantify, based on recent trends the Company has observed, the Company is increasing its full year 2020 guidance as follows:

Net income attributable to common stockholders within a range of $0.46 to $0.48 per diluted share
Company share of Core FFO within a range of $1.29 to $1.31 per diluted share
Year-end Stabilized Same Property Portfolio occupancy within a range of 97.5% to 98.0%
Stabilized Same Property Portfolio NOI growth for the year within a range of 3.0% to 3.5%
General and administrative expenses within a range of $36.5 million to $37.0 million

The Core FFO guidance refers only to the Company’s in-place portfolio as of October 20, 2020 and the pending acquisition of an industrial park with four buildings (the “Industrial Park”) that is expected to close during the fourth quarter of 2020 (for additional details, refer to the Company’s Form 8-K that was filed with the SEC on October 9, 2020) and does not include any assumptions for other acquisitions, dispositions or balance sheet activities that may or may not occur through the end of the year. A number of factors could impact the Company’s ability to deliver results in line with its guidance, including, but not limited to, the number of tenants requesting rent relief or failing to pay rent in future periods, the duration and severity of the impact of the COVID-19 pandemic, interest rates, the economy, the supply and demand of industrial real estate, failure to satisfy the closing conditions for the Industrial Park, 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.

Supplemental Information:

Details regarding these results can be found in the Company’s supplemental information 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, October 21, 2020, at 1:00 p.m. Eastern Time to review third 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 November 21, 2020, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13709051.

About Rexford Industrial:

Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 232 properties with approximately 27.9 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet.
For additional information, visit www.rexfordindustrial.com.




Forward Looking Statements:

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, 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 2020 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.



2020 Estimate
LowHigh
Net income attributable to common stockholders$0.46 $0.48 
Company share of depreciation and amortization0.94 0.94 
Company share of gains on sale of real estate(0.11)(0.11)
Company share of Core FFO$1.29 $1.31 


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

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

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

Stabilized Same Property Portfolio:
Our Stabilized Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly owned by us for the period from January 1, 2019 through September 30, 2020, and that were stabilized as of January 1, 2019. Therefore, our Stabilized Same Property Portfolio excludes any properties that were acquired or sold during the period from January 1, 2019 through September 30, 2020, and properties acquired prior to January 1, 2019, that were classified as current or future repositioning, development or lease-up during 2019 or 2020 (listed below). For 2020, our Stabilized Same Property Portfolio consists of 159 properties aggregating 19,690,990 rentable square feet.
1210 N. Red Gum Street16121 Carmenita Road3233 Mission Oaks Boulevard
1332-1340 Rocky Point Drive1998 Surveyor Avenue7110 E. Rosecrans Avenue
14748-14750 Nelson Avenue2700-2722 Fairview Street851 Lawrence Drive
15401 Figueroa Street28903 Avenue Paine
1580 Carson Street29003 Avenue Sherman

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 at a property as the lower of (i) 40,000 square feet of space or (ii) 50% of a property’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. We look to update this definition on an annual basis based on the growth and size of the Company’s consolidated portfolio.

Net Debt to Enterprise Value: At September 30, 2020, we had consolidated indebtedness of $908.0 million, reflecting a net debt to enterprise value of approximately 9.7%. Our enterprise value is defined as the sum of the liquidation preference of our outstanding preferred stock and preferred units plus the market value of our common stock excluding shares of nonvested restricted stock, plus the aggregate value of common units not owned by us, plus the value of our net debt.  Our net debt is defined as our consolidated indebtedness less cash and cash equivalents. 

Contact:
Investor Relations:

Stephen Swett
424-256-2153 ext 401
investorrelations@rexfordindustrial.com



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

 
September 30, 2020December 31, 2019
(unaudited)
ASSETS  
Land$2,163,518 $1,927,098 
Buildings and improvements1,791,668 1,680,178 
Tenant improvements80,541 72,179 
Furniture, fixtures, and equipment132 141 
Construction in progress41,941 18,794 
Total real estate held for investment4,077,800 3,698,390 
Accumulated depreciation(354,203)(296,777)
Investments in real estate, net3,723,597 3,401,613 
Cash and cash equivalents243,619 78,857 
Restricted cash42,387 — 
Rents and other receivables, net5,838 5,889 
Deferred rent receivable, net40,473 29,671 
Deferred leasing costs, net21,842 18,688 
Deferred loan costs, net2,419 695 
Acquired lease intangible assets, net67,304 73,090 
Acquired indefinite-lived intangible5,156 5,156 
Interest rate swap asset— 766 
Other assets13,982 9,671 
Acquisition related deposits3,625 14,526 
Total Assets$4,170,242 $3,638,622 
LIABILITIES & EQUITY  
Liabilities  
Notes payable$906,608 $857,842 
Interest rate swap liability20,869 8,488 
Accounts payable, accrued expenses and other liabilities45,212 31,112 
Dividends payable27,532 21,624 
Acquired lease intangible liabilities, net61,148 59,340 
Tenant security deposits27,683 28,779 
Prepaid rents10,970 8,988 
Total Liabilities1,100,022 1,016,173 
Equity  
Rexford Industrial Realty, Inc. stockholders’ equity 
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized, at September 30, 2020 and December 31, 2019
5.875% series A cumulative redeemable preferred stock, 3,600,000 shares outstanding at September 30, 2020 and December 31, 2019 ($90,000 liquidation preference)86,651 86,651 
5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding at September 30, 2020 and December 31, 2019 ($75,000 liquidation preference)72,443 72,443 
5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at September 30, 2020 and December 31, 2019 ($86,250 liquidation preference)83,233 83,233 
Common Stock, $0.01 par value per share, 489,950,000 authorized and 123,789,199 and 113,793,300 shares outstanding at September 30, 2020 and December 31, 2019, respectively1,236 1,136 
Additional paid in capital2,821,127 2,439,007 
Cumulative distributions in excess of earnings(148,492)(118,751)
Accumulated other comprehensive income(20,231)(7,542)
Total stockholders’ equity2,895,967 2,556,177 
Noncontrolling interests174,253 66,272 
Total Equity3,070,220 2,622,449 
Total Liabilities and Equity$4,170,242 $3,638,622 



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

 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
REVENUES  
Rental income$83,622 $67,020 $240,882 $190,237 
Management, leasing and development services118 90 325 301 
Interest income116 951 279 2,276 
TOTAL REVENUES83,856 68,061 241,486 192,814 
OPERATING EXPENSES
Property expenses20,684 16,165 57,682 45,116 
General and administrative9,464 7,440 27,753 22,085 
Depreciation and amortization28,811 25,496 84,715 72,014 
TOTAL OPERATING EXPENSES58,959 49,101 170,150 139,215 
OTHER EXPENSES
Acquisition expenses70 122 89 174 
Interest expense7,299 6,785 22,176 19,511 
TOTAL EXPENSES66,328 56,008 192,415 158,900 
Gains on sale of real estate13,669 895 13,669 5,705 
NET INCOME31,197 12,948 62,740 39,619 
Less: net income attributable to noncontrolling interest (1,531)(518)(3,332)(1,288)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.29,666 12,430 59,408 38,331 
Less: preferred stock dividends(3,636)(2,572)(10,909)(7,419)
Less: earnings attributable to participating securities (129)(112)(389)(339)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS$25,901 $9,746 $48,110 $30,573 
Net income attributable to common stockholders per share basic
$0.21 $0.09 $0.40 $0.29 
Net income attributable to common stockholders per share diluted
$0.21 $0.09 $0.40 $0.29 
Weighted-average shares of common stock outstanding – basic123,549 109,645 119,154 104,653 
Weighted-average shares of common stock outstanding – diluted123,844 110,074 119,425 105,014 




Rexford Industrial Realty, Inc.
Stabilized Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Stabilized Same Property Portfolio Occupancy:
September 30,
20202019Change (basis points)
Occupancy:
Los Angeles County98.8%98.1%70 bps
Orange County99.0%98.8%20 bps
San Bernardino County98.6%97.9%70 bps
San Diego County97.3%96.1%120 bps
Ventura County94.8%99.6%(480) bps
Total/Weighted Average98.4%98.0%40 bps
Stabilized Same Property Portfolio NOI and Cash NOI:    
Three Months Ended September 30,Nine Months Ended September 30,
20202019$ Change% Change20202019$ Change% Change
Rental income$58,884 $56,064 $2,820 5.0%$173,728 $166,855 $6,873 4.1%
Property expenses14,119 13,204 915 6.9%40,225 38,497 1,728 4.5%
Stabilized Same Property Portfolio NOI$44,765 $42,860 $1,905 4.4%$133,503 $128,358 $5,145 4.0%
Straight line rental revenue adjustment(1,334)(1,020)(314)30.8%(5,158)(3,381)(1,777)52.6%
Amortization of above/below market lease intangibles(1,358)(1,759)401 (22.8)%(4,264)(5,252)988 (18.8)%
Stabilized Same Property Portfolio Cash NOI$42,073 $40,081 $1,992 5.0%$124,081 $119,725 $4,356 3.6%




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

Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Net income$31,197 $12,948 $62,740 $39,619 
Add:
General and administrative9,464 7,440 27,753 22,085 
Depreciation and amortization28,811 25,496 84,715 72,014 
Acquisition expenses70 122 89 174 
Interest expense7,299 6,785 22,176 19,511 
Deduct:
Management, leasing and development services118 90 325 301 
Interest income116 951 279 2,276 
Gains on sale of real estate13,669 895 13,669 5,705 
Net operating income (NOI)$62,938 $50,855 $183,200 $145,121 
Non-Stabilized Same Property Portfolio rental income(24,738)(10,956)(67,154)(23,382)
Non-Stabilized Same Property Portfolio property expenses6,565 2,961 17,457 6,619 
Stabilized Same Property Portfolio NOI$44,765 $42,860 $133,503 $128,358 
Straight line rental revenue adjustment(1,334)(1,020)(5,158)(3,381)
Amortization of above/below market lease intangibles(1,358)(1,759)(4,264)(5,252)
Stabilized Same Property Portfolio Cash NOI$42,073 $40,081 $124,081 $119,725 




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 September 30,Nine Months Ended September 30,
 2020201920202019
Net income$31,197 $12,948 $62,740 $39,619 
Add:  
Depreciation and amortization28,811 25,496 84,715 72,014 
Deduct:
Gains on sale of real estate13,669 895 13,669 5,705 
Funds From Operations (FFO)$46,339 $37,549 $133,786 $105,928 
Less: preferred stock dividends(3,636)(2,572)(10,909)(7,419)
Less: FFO attributable to noncontrolling interest(1)
(2,017)(1,056)(5,472)(2,810)
Less: FFO attributable to participating securities(2)
(197)(187)(584)(545)
Company share of FFO$40,489 $33,734 $116,821 $95,154 
Company Share of FFO per common share – basic$0.33 $0.31 $0.98 $0.91 
Company Share of FFO per common share – diluted$0.33 $0.31 $0.98 $0.91 
FFO$46,339 $37,549 $133,786 $105,928 
Adjust:  
Acquisition expenses70 122 89 174 
Core FFO$46,409 $37,671 $133,875 $106,102 
Less: preferred stock dividends(3,636)(2,572)(10,909)(7,419)
Less: Core FFO attributable to noncontrolling interest(1)
(2,019)(1,059)(5,474)(2,813)
Less: Core FFO attributable to participating securities(2)
(197)(187)(584)(545)
Company share of Core FFO$40,557 $33,853 $116,908 $95,325 
Company share of Core FFO per common share – basic$0.33 $0.31 $0.98 $0.91 
Company share of Core FFO per common share – diluted$0.33 $0.31 $0.98 $0.91 
Weighted-average shares of common stock outstanding – basic123,549 109,645 119,154 104,653 
Weighted-average shares of common stock outstanding – diluted123,844 110,074 119,425 105,014 
(1)Noncontrolling interests relate to interests in the Company’s operating partnership, represented by common units and preferred units (Series 1 & 2 CPOP units) of partnership interests in the 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 (EX-99.2)

Document
Exhibit 99.2
405625976_q32020cover1.jpg



Table of Contents.
SectionPage
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
Stabilized Same Property Portfolio Performance
11
Capitalization Summary
12
Debt Summary
13-14
Portfolio Data:
Portfolio Overview
15
Occupancy and Leasing Trends
16
Leasing Statistics
17-18
Top Tenants and Lease Segmentation
19
Capital Expenditure Summary
20
Properties and Space Under Repositioning/Development
21-22
Current Year Acquisitions and Dispositions Summary
23-24
Guidance
25
Net Asset Value Components
26
Notes and Definitions
27-30
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; an epidemic or pandemic (such as the outbreak and worldwide spread of novel coronavirus (COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities may implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned factors and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; 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 2019 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on February 19, 2020, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, which was filed with the SEC on July 27, 2020. 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.
Third Quarter 2020
Supplemental Financial Reporting Package
Page 2

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Investor Company Summary.
Executive Management Team
Howard SchwimmerCo-Chief Executive Officer, Director
Michael S. FrankelCo-Chief Executive Officer, Director
Laura ClarkChief Financial Officer
David LanzerGeneral Counsel and Corporate Secretary
Board of Directors
Richard ZimanChairman
Howard SchwimmerCo-Chief Executive Officer, Director
Michael S. FrankelCo-Chief Executive Officer, Director
Robert L. AntinDirector
Steven C. GoodDirector
Diana J. IngramDirector
Tyler H. RoseDirector
Peter SchwabDirector
Investor Relations Information
ICR
Stephen Swett
www.icrinc.com
212-849-3882
Equity Research Coverage
Bank of America Merrill LynchJames Feldman(646) 855-5808
BairdDavid Rodgers(216) 737-7341
Capital OneChris Lucas(571) 633-8151
Citigroup Investment ResearchEmmanuel Korchman(212) 816-1382
Green Street AdvisorsEric Frankel(949) 640-8780
J.P. MorganMichael W. Mueller, CFA(212) 622-6689
Jefferies LLCJonathan Petersen(212) 284-1705
Wells Fargo SecuritiesBlaine 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.
Third Quarter 2020
Supplemental Financial Reporting Package
Page 3

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Financial and Portfolio Highlights and Common Stock Data. (1)
(in thousands except share and per share data and portfolio statistics)
Three Months Ended
September 30, 2020June 30, 2020March 31, 2020December 31, 2019September 30, 2019
Financial Results:
Total rental income$83,622 $79,770 $77,490 $74,015 $67,020 
Net income$31,197 $16,271 $15,272 $24,382 $12,948 
Net Operating Income (NOI)$62,938 $60,886 $59,376 $55,859 $50,855 
Company share of Core FFO$40,557 $38,832 $37,519 $35,754 $33,853 
Company share of Core FFO per common share - diluted$0.33 $0.32 $0.33 $0.32 $0.31 
Adjusted EBITDA$56,384 $55,982 $55,566 $52,232 $49,271 
Dividend declared per common share$0.215 $0.215 $0.215 $0.185 $0.185 
Portfolio Statistics:
Portfolio rentable square feet (“RSF”) - consolidated27,711,078 27,633,778 27,303,260 26,425,208 24,752,305 
Ending occupancy - consolidated portfolio97.2 %95.4 %95.6 %96.5 %95.1 %
Ending percentage leased - consolidated portfolio97.3 %96.0 %95.7 %96.8 %95.3 %
Stabilized occupancy - consolidated portfolio97.9 %97.0 %97.4 %97.9 %97.5 %
Leasing spreads - GAAP26.8 %32.3 %36.6 %42.0 %31.2 %
Leasing spreads - cash17.4 %18.2 %24.4 %27.1 %19.4 %
Stabilized Same Property Performance:
Stabilized Same Property Portfolio RSF(2)
19,690,990 19,690,990 19,690,990 19,690,990 19,690,990 
Stabilized Same Property Portfolio ending occupancy(2)
98.4 %97.8 %98.4 %98.3 %98.0 %
Stabilized Same Property Portfolio NOI growth(2)(3)
4.4 %3.5 %4.0 %n/an/a
Stabilized Same Property Portfolio Cash NOI growth(2)(3)
5.0 %(1.8)%7.9 %n/an/a
Capitalization:
Common stock price at quarter end$45.76 $41.43 $41.01 $45.67 $44.02 
Common shares issued and outstanding123,551,852 123,546,160 116,087,092 113,580,755 110,669,277 
Total shares and units issued and outstanding at period end(4)
127,455,361 127,454,636 120,004,376 116,304,528 113,091,134 
Weighted average shares outstanding - diluted123,843,977 120,068,176 114,314,331 112,096,619 110,074,074 
Series A, B and C Preferred Stock and Series 1 and 2 CPOP Units$319,068 $319,068 $319,068 $278,281 $278,281 
Total equity market capitalization$6,151,425 $5,599,514 $5,240,447 $5,589,909 $5,256,553 
Total consolidated debt$908,046 $908,250 $905,645 $860,958 $860,999 
Total combined market capitalization (net debt plus equity)$6,815,852 $6,253,391 $6,033,660 $6,372,010 $5,920,044 
Ratios:
Net debt to total combined market capitalization9.7 %10.5 %13.1 %12.3 %11.2 %
Net debt to Adjusted EBITDA (quarterly results annualized)2.9x2.9x3.6x3.7x3.4x
(1)For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section & reconciliation section beginning on page 27 and page 8 of this report, respectively.
(2)For comparability, Stabilized Same Property Portfolio RSF, ending occupancy, NOI growth and Cash NOI growth for all comparable periods has been restated to remove the results of 3927 Oceanic Drive and 121 West 33rd Street, which were sold during Q3’20. See page 24 for details related to dispositions.
(3)Represents the year over year percentage change in NOI, Cash NOI and Cash NOI, excluding the impact of COVID-19 rent relief agreements, for the Stabilized Same Property Portfolio.
(4)Includes the following # of OP Units/vested LTIP units held by noncontrolling interests: 3,903,509 (Sep 30, 2020), 3,908,476 (Jun 30, 2020), 3,917,284 (Mar 31, 2020), 2,723,773 (Dec 31, 2019) and 2,421,857 (Sep 30, 2019). Excludes the following # of shares of unvested restricted stock: 236,739 (Sep 30, 2020), 243,039 (Jun 30, 2020), 244,255 (Mar 31, 2020), 212,545 (Dec 31, 2019) and 214,995 (Sep 30, 2019). Excludes unvested LTIP units and unvested performance units.
Third Quarter 2020
Supplemental Financial Reporting Package
Page 4

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Consolidated Balance Sheets.
(unaudited and in thousands)
September 30, 2020June 30, 2020March 31, 2020December 31, 2019September 30, 2019
ASSETS
Land$2,163,518 $2,128,243 $2,068,460 $1,927,098 $1,728,490 
Buildings and improvements1,791,668 1,770,930 1,748,675 1,680,178 1,611,060 
Tenant improvements80,541 77,211 75,341 72,179 68,124 
Furniture, fixtures, and equipment132 141 141 141 141 
Construction in progress41,941 39,860 26,791 18,794 29,094 
  Total real estate held for investment4,077,800 4,016,385 3,919,408 3,698,390 3,436,909 
Accumulated depreciation(354,203)(337,938)(316,812)(296,777)(278,726)
Investments in real estate, net3,723,597 3,678,447 3,602,596 3,401,613 3,158,183 
Cash and cash equivalents243,619 254,373 112,432 78,857 197,508 
Restricted cash42,387 67 46 — — 
Rents and other receivables, net5,838 4,790 5,859 5,889 4,376 
Deferred rent receivable, net40,473 37,552 31,339 29,671 27,502 
Deferred leasing costs, net21,842 20,269 19,482 18,688 17,561 
Deferred loan costs, net2,419 2,599 2,770 695 849 
Acquired lease intangible assets, net(1)
67,304 71,513 76,138 73,090 67,110 
Acquired indefinite-lived intangible5,156 5,156 5,156 5,156 5,156 
Interest rate swap asset— — — 766 374 
Other assets13,982 16,656 10,717 9,671 10,778 
Acquisition related deposits3,625 63,612 5,896 14,526 8,415 
Assets associated with real estate held for sale, net(2)
— — — — 4,582 
Total Assets$4,170,242 $4,155,034 $3,872,431 $3,638,622 $3,502,394 
LIABILITIES & EQUITY
Liabilities
Notes payable$906,608 $906,687 $903,802 $857,842 $857,688 
Interest rate swap liability20,869 22,916 22,690 8,488 10,727 
Accounts payable, accrued expenses and other liabilities45,212 33,731 39,000 31,112 34,669 
Dividends payable27,532 27,532 25,931 21,624 21,034 
Acquired lease intangible liabilities, net(3)
61,148 61,108 63,914 59,340 56,151 
Tenant security deposits27,683 26,158 30,342 28,779 27,688 
Prepaid rents10,970 11,163 8,074 8,988 7,759 
Liabilities associated with real estate held for sale(2)
— — — — 135 
Total Liabilities1,100,022 1,089,295 1,093,753 1,016,173 1,015,851 
Equity
Preferred stock242,327 242,327 242,327 242,327 242,529 
Common stock1,236 1,236 1,162 1,136 1,106 
Additional paid in capital2,821,127 2,820,216 2,524,274 2,439,007 2,306,282 
Cumulative distributions in excess of earnings(148,492)(147,907)(132,843)(118,751)(117,711)
Accumulated other comprehensive income(20,231)(22,214)(21,950)(7,542)(10,132)
Total stockholders’ equity2,895,967 2,893,658 2,612,970 2,556,177 2,422,074 
Noncontrolling interests174,253 172,081 165,708 66,272 64,469 
Total Equity3,070,220 3,065,739 2,778,678 2,622,449 2,486,543 
Total Liabilities and Equity$4,170,242 $4,155,034 $3,872,431 $3,638,622 $3,502,394 
(1)Includes net above-market tenant lease intangibles of $5,900 (September 30, 2020), $6,230 (June 30, 2020), $6,410 (March 31, 2020), $6,675 (December 31, 2019) and $5,517 (September 30, 2019).
(2)At September 30, 2019, our property located at 13914-13932 East Valley Boulevard was classified as held for sale.
(3)Represents net below-market tenant lease intangibles as of the balance sheet date.
Third Quarter 2020
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
Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019
Revenues
Rental income(1)
$83,622 $79,770 $77,490 $74,015 $67,020 
Management, leasing, and development services118 114 93 105 90 
Interest income116 66 97 279 951 
Total Revenues83,856 79,950 77,680 74,399 68,061 
Operating Expenses
Property expenses20,684 18,884 18,114 18,156 16,165 
General and administrative9,464 8,972 9,317 8,215 7,440 
Depreciation and amortization28,811 28,381 27,523 26,877 25,496 
Total Operating Expenses58,959 56,237 54,954 53,248 49,101 
Other Expenses
Acquisition expenses70 14 (3)122 
Interest expense7,299 7,428 7,449 7,364 6,785 
Total Expenses66,328 63,679 62,408 60,609 56,008 
Gains on sale of real estate13,669 — — 10,592 895 
Net Income31,197 16,271 15,272 24,382 12,948 
Less: net income attributable to noncontrolling interests(1,531)(1,084)(717)(734)(518)
Net income attributable to Rexford Industrial Realty, Inc. 29,666 15,187 14,555 23,648 12,430 
Less: preferred stock dividends(3,636)(3,637)(3,636)(3,636)(2,572)
Less: earnings allocated to participating securities (129)(129)(131)(108)(112)
Net income attributable to common stockholders$25,901 $11,421 $10,788 $19,904 $9,746 
Earnings per Common Share
Net income attributable to common stockholders per share - basic$0.21 $0.09 $0.09 $0.18 $0.09 
Net income attributable to common stockholders per share - diluted$0.21 $0.09 $0.09 $0.18 $0.09 
Weighted average shares outstanding - basic123,548,978119,810,283114,054,434111,612,279109,645,216
Weighted average shares outstanding - diluted123,843,977120,068,176114,314,331112,096,619110,074,074
(1)See footnote (1) on page 7 for details related to our presentation of “Rental income” in the consolidated statements of operations for all periods presented.

Third Quarter 2020
Supplemental Financial Reporting Package
Page 6

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Consolidated Statements of Operations.
Quarterly Results(unaudited and in thousands)
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenues
Rental income(1)
$83,622 $67,020 $240,882 $190,237 
Management, leasing, and development services118 90 325 301 
Interest income116 951 279 2,276 
Total Revenues83,856 68,061 241,486 192,814 
Operating Expenses
Property expenses20,684 16,165 57,682 45,116 
General and administrative9,464 7,440 27,753 22,085 
Depreciation and amortization28,811 25,496 84,715 72,014 
Total Operating Expenses58,959 49,101 170,150 139,215 
Other Expenses
Acquisition expenses70 122 89 174 
Interest expense7,299 6,785 22,176 19,511 
Total Expenses66,328 56,008 192,415 158,900 
Gains on sale of real estate13,669 895 13,669 5,705 
Net Income31,197 12,948