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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): July 21, 2020
 
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: (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 class
 
Trading symbols
 
Name of each exchange on which registered
Common Stock, $0.01 par value
 
REXR
 
New York Stock Exchange
5.875% Series A Cumulative Redeemable Preferred Stock
 
REXR-PA
 
New York Stock Exchange
5.875% Series B Cumulative Redeemable Preferred Stock
 
REXR-PB
 
New York Stock Exchange
5.625% Series C Cumulative Redeemable Preferred Stock
 
REXR-PC
 
New 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 July 21, 2020, Rexford Industrial Realty, Inc. (“Rexford Industrial”) issued a press release announcing its earnings for the quarter ended June 30, 2020, and distributed certain supplemental financial information. On July 21, 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 June 30, 2020 and distributed certain supplemental information. On July 21, 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
 
 
 
 
104
 
Cover 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.
July 21, 2020
 
/s/ Michael S. Frankel
 
Michael S. Frankel
Co-Chief Executive Officer
(Principal Executive Officer)
 
 
 
Rexford Industrial Realty, Inc.
July 21, 2020
 
/s/ Howard Schwimmer
 
Howard Schwimmer
Co-Chief Executive Officer
(Principal Executive Officer)



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

404691456_rexlogo11520a05.jpg
REXFORD INDUSTRIAL ANNOUNCES SECOND QUARTER 2020 FINANCIAL RESULTS

- 2Q 2020 Net Income Attributable to Common Stockholders of $11.4M, or $0.10 per Diluted Share -
- 2Q 2020 Company Share of Core FFO of $0.32 per Diluted Share, Up 6.7% Compared to 2Q 2019 -
- 2Q 2020 Company Share of Core FFO of $38.8M, Up 21.1% Compared to 2Q 2019 -
- 2Q 2020 Stabilized Same Property Portfolio NOI Up 3.1% Over 2Q 2019 -
- 2Q 2020 GAAP Releasing Spreads of 32.3% and Cash Releasing Spreads of 18.2% -
- Reiterating Core FFO 2020 Guidance Range of $1.26 to $1.29 per Diluted Share -

Los Angeles, California - July 21, 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 second quarter of 2020.

Second Quarter 2020 Financial and Operational Highlights:
Net income attributable to common stockholders of $0.10 per diluted share compared to $0.12 per diluted share for the second quarter of last year.
Company share of Core FFO of $38.8 million, an increase of 21.1% year-over-year.
Company share of Core FFO per diluted share of $0.32, an increase of 6.7% year-over-year.
Consolidated Portfolio Net Operating Income (NOI) of $60.9 million, an increase of 25.6% year-over-year.
Consolidated Portfolio Cash NOI of $52.0 million, an increase of 14.7% year-over-year.
Stabilized Same Property Portfolio GAAP NOI increased 3.1% and Stabilized Same Property Portfolio Cash NOI decreased 2.3% year-over-year.
Comparable rental rates on 1,369,506 rentable square feet of new and renewal leases were 32.3% higher than prior rents on a GAAP basis and 18.2% higher on a cash basis.
Acquired six industrial properties and one small land parcel for an aggregate purchase price of $76.5 million.
Completed approximately $295 million of total equity issuance, ending the quarter with a low-leverage balance sheet measured by a net debt-to-enterprise value ratio of 10.5%.

“Our second quarter results demonstrate our ability to continue to execute our strategy at superior levels, driving long-term growth and value creation by investing and operating within the infill Southern California industrial market, despite the recent unfortunate impacts of the COVID-19 pandemic. We achieved Core FFO growth of 21.1%, or 6.7% on a per share basis, for the second quarter of 2020, which was driven by continued internal and external growth, while maintaining an exceptionally low-leverage, fortress-like balance sheet,” stated Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. “We reported second quarter Stabilized Same Property NOI growth of 3.1% and (2.3)% on a GAAP and cash basis, respectively. Cash collections reflected the impact of local California municipalities’ mandates permitting tenants indicating impacts from COVID-19 to unilaterally defer their rent. Despite these challenges, supply demand dynamics within our submarkets remain firmly in our favor, and our entrepreneurial team has again proven their ability to drive best-in-class results, which included re-leasing spreads of 32.3% on a GAAP basis and 18.2% on a cash basis on nearly 1.4 million rentable square feet of leasing activity. Our team’s performance is strikingly positive in light of the fact that we entered the quarter facing a near total government-mandated commercial shutdown, the lingering effects of which still persist. We also completed the acquisition of six properties, for a total of $76 million, plus three additional acquisitions totaling $69 million which closed subsequent to quarter end, bringing our year to date total investment volume to $353 million. Finally, we successfully maintained our low-leverage, fortress-like balance sheet to protect against ongoing COVID uncertainty as well as to enable us to opportunistically capitalize upon emerging accretive internal and external growth opportunities. To this end, we raised approximately $295 million in total equity issuance, ending the quarter with a




net debt-to-enterprise value ratio of 10.5%. We also ended the quarter in a very favorable liquidity position with access to upwards of $1 billion of liquidity. We believe our Company is well positioned to optimize our performance during what we hope are temporary market disruptions created by the COVID-19 pandemic, and to pursue internal and external growth opportunities designed to create long term cash flow and value growth for our shareholders.”

Financial Results:

The Company reported net income attributable to common stockholders of $11.4 million, or $0.10 per diluted share, for the three months ended June 30, 2020, as compared to net income attributable to common stockholders of $12.8 million, or $0.12 per diluted share, for the three months ended June 30, 2019. Net income for the three months ended June 30, 2019 includes $4.8 million of gains on sale of real estate. The Company did not report any gains on sale of real estate during the three months ended June 30, 2020.

The Company reported net income attributable to common stockholders of $22.2 million, or $0.19 per diluted share, for the six months ended June 30, 2020, as compared to net income attributable to common stockholders of $20.8 million, or $0.20 per diluted share, for the six months ended June 30, 2019. Net income for the six months ended June 30, 2019 includes $4.8 million of gains on sale of real estate. The Company did not report any gains on sale of real estate during the six months ended June 30, 2020.

The Company reported Company share of Core FFO of $38.8 million, or $0.32 per diluted share of common stock, for the three months ended June 30, 2020, as compared to Company share of Core FFO of $32.1 million, or $0.30 per diluted share of common stock, for the three months ended June 30, 2019. Amounts are adjusted for non-core expenses of $14 thousand for the three months ended June 30, 2020, and $29 thousand for the three months ended June 30, 2019.

The Company reported Company share of Core FFO of $76.4 million, or $0.65 per diluted share of common stock, for the six months ended June 30, 2020, as compared to Company share of Core FFO of $61.5 million, or $0.60 per diluted share of common stock, for the six months ended June 30, 2019. Amounts are adjusted for non-core expenses of $19 thousand for the six months ended June 30, 2020, and $52 thousand for the six months ended June 30, 2019.

For the three months ended June 30, 2020, the Company’s consolidated portfolio NOI increased 25.6% compared to the three months ended June 30, 2019, and the Company’s consolidated portfolio Cash NOI increased 14.7% compared to the three months ended June 30, 2019.

For the six months ended June 30, 2020, the Company’s consolidated portfolio NOI increased 27.6% compared to the six months ended June 30, 2019, and the Company’s consolidated portfolio Cash NOI increased 22.9% compared to the six months ended June 30, 2019.

For the three months ended June 30, 2020, the Company’s Stabilized Same Property Portfolio NOI increased 3.1% compared to the second quarter of 2019, driven by a 3.0% increase in Stabilized Same Property Portfolio rental income and a 2.6% increase in Stabilized Same Property Portfolio expenses. Stabilized Same Property Portfolio Cash NOI decreased 2.3% compared to the second quarter of 2019, due principally to short-term rent deferral agreements granted to select tenants as a result of government-mandates enabling tenants indicating impacts from COVID-19 to unilaterally defer their rent.

For the six months ended June 30, 2020, the Company’s Stabilized Same Property Portfolio NOI increased 3.4% compared to the six months ended June 30, 2019, driven by a 3.4% increase in Stabilized Same Property Portfolio rental income and a 3.2% increase in Stabilized Same Property Portfolio expenses. Stabilized Same Property Portfolio Cash NOI increased 2.5% compared to the six months ended June 30, 2019.






Operating Results:

During the second quarter of 2020, the Company signed 123 new and renewal leases totaling 1,369,506 rentable square feet. Average rental rates on comparable new and renewal leases were up 32.3% on a GAAP basis and up 18.2% on a cash basis. The Company signed 49 new leases for 550,977 rentable square feet, with GAAP rents up 37.9% compared to the prior in-place leases. The Company signed 74 renewal leases for 818,529 rentable square feet, with GAAP rents up 30.4% compared to the prior in-place leases. For the 49 new leases, cash rents increased 17.9%, and for the 74 renewal leases, cash rents were up 18.3%, compared to the ending cash rents for the prior leases.

At June 30, 2020, the Company’s Stabilized Same Property Portfolio occupancy was 97.6%. At June 30, 2020, the Company’s consolidated portfolio, excluding value-add repositioning assets, was 97.0% occupied and 97.6% leased, and the Company’s consolidated portfolio, including value-add repositioning assets, was 95.4% occupied and 96.0% leased.

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 June 30, 2020. See below for information regarding the supplemental information package. 

Transaction Activity:

In the second quarter 2020, the Company acquired six properties and a one-acre land parcel for an aggregate purchase price of $76.5 million, as detailed below.

In April 2020, the Company acquired:
Brady Way, a one-acre land parcel adjacent and effectively adding to the Company’s Knott Street repositioning property, located in the Orange County – West submarket for $0.9 million.
720-750 Vernon Avenue, a 100% leased single-tenant industrial property containing 71,692 square feet on 6.05 acres of land, located in the Los Angeles – San Gabriel Valley submarket, for $15.5 million, or $59 per land square foot.

In May 2020, the Company acquired:
6687 Flotilla Street, a 100% leased single-tenant industrial building containing 120,000 square feet on 5.1 acres of land, located in the Los Angeles – Central submarket, for $21.0 million, or $175 per square foot.
1055 Sandhill Avenue, a vacant manufacturing building containing 158,595 square feet on 5.79 acres of land, located in the Los Angeles – South Bay submarket, for $14.5 million, or $57 per land square foot.
In June 2020, the Company acquired
22895 Eastpark Drive, a 100% leased single-tenant industrial building containing 34,950 square feet on 2.35 acres of land, located in the Orange County – North submarket, for $6.8 million, or $196 per square foot.
8745-8775 Production Avenue, a 65% leased two-building industrial complex containing 46,820 square feet on 2.85 acres of land, located in the San Diego – Central submarket, for $7.9 million, or $168 per square foot.
15850 Slover Avenue, a vacant, newly constructed single-tenant industrial property containing 60,127 square feet on 2.79 acres of land, located in the Inland Empire – West submarket, for $10.0 million, or $166 per square foot.

Subsequent to the second quarter of 2020, the Company completed three additional acquisitions for an aggregate purchase price of $68.7 million.





Balance Sheet:
 
The Company ended the second quarter with $754 million in liquidity, including $254 million in cash and $500 million available under our unsecured revolving credit facility.

During the quarter ended June 30, 2020, the Company completed an underwritten public offering of 7,187,500 shares of its common stock at $39.85 per share, for gross proceeds of approximately $286.4 million and net proceeds of approximately $285.1 million after deducting the underwriting discount and offering costs.

During the quarter ended June 30, 2020, the Company issued 248,813 shares of common stock under its at-the-market equity offering program (ATM program). The shares were issued at a weighted average price of $40.59 per share, providing gross proceeds of approximately $10.1 million and net proceeds of approximately $9.9 million. As of June 30, 2020, the current ATM program had approximately $259.8 million of remaining capacity.

As of June 30, 2020, the Company had $908.3 million of outstanding debt, with an average interest rate of 3.47% and an average term-to-maturity of 5.1 years. As of June 30, 2020, $849.8 million, or 94%, of the Company’s outstanding debt was fixed-rate with an average interest rate of 3.58% and an average term-to-maturity of 5.2 years. The remaining $58.5 million, or 6%, of the Company’s outstanding debt was floating-rate, with an average interest rate of LIBOR + 1.70% and an average term-to-maturity of 3.1 years. The Company has no debt maturities until 2022.

COVID-19 Impact on Operations (As of July 17, 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 emergency orders are in effect, with repayment generally mandated within six months after the end of the local emergency. 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 July 17, 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 June 30, 2020):
The Company had 1,453 leases representing in-place annualized base rent (“ABR”) of $263.3 million. ABR is defined/calculated as the monthly contractual base rent per the leases, excluding any rent abatements, as of June 30, 2020, multiplied by 12.
The Company has received rent relief requests from 333 tenants, representing 26.7% or $70.3 million of ABR.
The Company has executed rent relief agreements with 259 tenants, representing 23.7% or $62.4 million of ABR. See the table below for a summary of rent relief provided to tenants for the second quarter of 2020.

The following table sets forth the following information regarding April 2020, May 2020, June 2020 and July-to-date 2020 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 Deposits
 
Acceleration of Concessions
 
Deferral of Base Rent(3)
 
Total
 
% of Contractual Billings Collected after Relief(4)
April 2020
 
$
26,165

 
86.7
%
 
$
2,357

 
$
337

 
$
589

 
$
3,283

 
99.1
%
May 2020
 
$
25,665

 
84.0
%
 
1,389

 
369

 
1,825

 
3,583

 
97.7
%
June 2020
 
$
25,231

 
90.9
%
 
460

 
119

 
1,221

 
1,800

 
97.9
%
Total Q2-2020
 
$
77,061

 
87.2
%
 
$
4,206

 
$
825

 
$
3,635

 
$
8,666

 
98.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
July 2020
 
$
25,264

 
91.9
%
 
$
115

 
$

 
$
309

 
$
424

 
93.5
%
***Reflects collections through July 17, 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 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 to 2 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.

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 tenants impacted by COVID-19 to unilaterally defer rent, is difficult to predict or quantify, based on recent trends the Company has observed, the Company is reiterating its full year 2020 guidance as follows:

Net income attributable to common stockholders within a range of $0.28 to $0.31 per diluted share
Company share of Core FFO within a range of $1.26 to $1.29 per diluted share
Year-end Stabilized Same Property Portfolio occupancy within a range of 95.0% to 96.0%
Stabilized Same Property Portfolio NOI growth for the year within a range of 1.3% to 1.8%
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 July 21, 2020, and does not include any assumptions for 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, 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 July 20, 2020, the Company’s Board of Directors declared a dividend in the amount of $0.215 per share for the third quarter of 2020, payable in cash on October 15, 2020, to common stockholders and common unit holders of record as of September 30, 2020.
 
On July 20, 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 September 30, 2020, to preferred stockholders of record as of September 15, 2020.

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, July 22, 2020, at 1:00 p.m. Eastern Time to review second 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 August 22, 2020, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13706119.





About Rexford Industrial:

Rexford Industrial, a real estate investment trust focused on owning and operating industrial properties throughout Southern California infill markets, owns 234 properties with approximately 28.0 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 March 31, 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
 
Low
 
High
Net income attributable to common stockholders
$
0.28

 
$
0.31

Company share of depreciation and amortization
$
0.98

 
$
0.98

Company share of Core FFO
$
1.26

 
$
1.29



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 July 21, 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 June 30, 2020, and properties 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 161 properties aggregating 19,820,371 rentable square feet.
1210 N. Red Gum Street
 
16121 Carmenita Road
 
3233 Mission Oaks Boulevard
1332-1340 Rocky Point Drive
 
1998 Surveyor Avenue
 
7110 E. Rosecrans Avenue
14748-14750 Nelson Avenue
 
2700-2722 Fairview Street
 
851 Lawrence Drive
15401 Figueroa Street
 
28903 Avenue Paine
 
 
1580 Carson Street
 
29003 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 June 30, 2020, we had consolidated indebtedness of $908.3 million, reflecting a net debt to enterprise value of approximately 10.5%. 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
[email protected]




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

 
 
June 30, 2020
 
December 31, 2019
 
(unaudited)
 
 
ASSETS
 
 
 
Land
$
2,128,243

 
$
1,927,098

Buildings and improvements
1,770,930

 
1,680,178

Tenant improvements
77,211

 
72,179

Furniture, fixtures, and equipment
141

 
141

Construction in progress
39,860

 
18,794

Total real estate held for investment
4,016,385

 
3,698,390

Accumulated depreciation
(337,938
)
 
(296,777
)
Investments in real estate, net
3,678,447

 
3,401,613

Cash and cash equivalents
254,373

 
78,857

Restricted cash
67

 

Rents and other receivables, net
4,790

 
5,889

Deferred rent receivable, net
37,552

 
29,671

Deferred leasing costs, net
20,269

 
18,688

Deferred loan costs, net
2,599

 
695

Acquired lease intangible assets, net
71,513

 
73,090

Acquired indefinite-lived intangible
5,156

 
5,156

Interest rate swap asset

 
766

Other assets
16,656

 
9,671

Acquisition related deposits
63,612

 
14,526

Total Assets
$
4,155,034

 
$
3,638,622

LIABILITIES & EQUITY
 
 
 
Liabilities
 
 
 
Notes payable
$
906,687

 
$
857,842

Interest rate swap liability
22,916

 
8,488

Accounts payable, accrued expenses and other liabilities
33,731

 
31,112

Dividends payable
27,532

 
21,624

Acquired lease intangible liabilities, net
61,108

 
59,340

Tenant security deposits
26,158

 
28,779

Prepaid rents
11,163

 
8,988

Total Liabilities
1,089,295

 
1,016,173

Equity
 
 
 
Rexford Industrial Realty, Inc. stockholders’ equity
 
 
 
Preferred stock, $0.01 par value per share, 10,050,000 shares authorized, at June 30, 2020 and December 31, 2019
 
 
 
5.875% series A cumulative redeemable preferred stock, 3,600,000 shares outstanding at June 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 June 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 June 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 June 30, 2020 and December 31, 2019, respectively
1,236

 
1,136

Additional paid in capital
2,820,216

 
2,439,007

Cumulative distributions in excess of earnings
(147,907
)
 
(118,751
)
Accumulated other comprehensive income
(22,214
)
 
(7,542
)
Total stockholders’ equity
2,893,658

 
2,556,177

Noncontrolling interests
172,081

 
66,272

Total Equity
3,065,739

 
2,622,449

Total Liabilities and Equity
$
4,155,034

 
$
3,638,622





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


 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
REVENUES
 
 
 
 
 
 
 
Rental income
$
79,770

 
$
63,613

 
$
157,260

 
$
123,217

Management, leasing and development services
114

 
109

 
207

 
211

Interest income
66

 
668

 
163

 
1,325

TOTAL REVENUES
79,950

 
64,390

 
157,630

 
124,753

OPERATING EXPENSES
 
 
 
 
 
 
 
Property expenses
18,884

 
15,139

 
36,998

 
28,951

General and administrative
8,972

 
7,301

 
18,289

 
14,645

Depreciation and amortization
28,381

 
24,522

 
55,904

 
46,518

TOTAL OPERATING EXPENSES
56,237

 
46,962

 
111,191

 
90,114

OTHER EXPENSES
 
 
 
 
 
 
 
Acquisition expenses
14

 
29

 
19

 
52

Interest expense
7,428

 
6,255

 
14,877

 
12,726

TOTAL EXPENSES
63,679

 
53,246

 
126,087

 
102,892

Gains on sale of real estate

 
4,810

 

 
4,810

NET INCOME
16,271

 
15,954

 
31,543

 
26,671

Less: net income attributable to noncontrolling interest
(1,084
)
 
(569
)
 
(1,801
)
 
(770
)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.
15,187

 
15,385

 
29,742

 
25,901

Less: preferred stock dividends
(3,637
)
 
(2,424
)
 
(7,273
)
 
(4,847
)
Less: earnings attributable to participating securities
(129
)
 
(113
)
 
(260
)
 
(227
)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
11,421

 
$
12,848

 
$
22,209

 
$
20,827

Net income attributable to common stockholders per share  basic
$
0.10

 
$
0.12

 
$
0.19

 
$
0.20

Net income attributable to common stockholders per share  diluted
$
0.10

 
$
0.12

 
$
0.19

 
$
0.20

Weighted-average shares of common stock outstanding – basic
119,810

 
105,848

 
116,932

 
102,116

Weighted-average shares of common stock outstanding – diluted
120,068

 
106,236

 
117,191

 
102,443






Rexford Industrial Realty, Inc.
Stabilized Same Property Portfolio Occupancy and NOI and Cash NOI
(Unaudited, dollars in thousands)
 
 
Stabilized Same Property Portfolio Occupancy:
 
June 30,
 
 
 
2020
 
2019
 
Change (basis points)
Occupancy:
 
 
 
 
 
Los Angeles County
98.8%
 
98.5%
 
30 bps
Orange County
97.4%
 
96.8%
 
60 bps
San Bernardino County
97.4%
 
97.8%
 
(40) bps
San Diego County
94.9%
 
97.5%
 
(260) bps
Ventura County
93.2%
 
97.9%
 
(470) bps
Total/Weighted Average
97.6%
 
98.0%
 
(40) bps

Stabilized Same Property Portfolio NOI and Cash NOI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
$ Change
 
% Change
 
2020
 
2019
 
$ Change
 
% Change
Rental income
$
57,513

 
$
55,851

 
$
1,662

 
3.0%
 
$
115,291

 
$
111,544

 
$
3,747

 
3.4%
Property expenses
13,178

 
12,850

 
328

 
2.6%
 
26,316

 
25,489

 
827

 
3.2%
Stabilized Same Property Portfolio NOI
$
44,335

 
$
43,001

 
$
1,334

 
3.1%
 
$
88,975

 
$
86,055

 
$
2,920

 
3.4%
Straight line rental revenue adjustment
(3,196
)
 
(630
)
 
(2,566
)
 
407.3%
 
(3,842
)
 
(2,365
)
 
(1,477
)
 
62.5%
Amortization of above/below market lease intangibles
(1,417
)
 
(1,729
)
 
312

 
(18.0)%
 
(2,906
)
 
(3,493
)
 
587

 
(16.8)%
Stabilized Same Property Portfolio Cash NOI
$
39,722

 
$
40,642

 
$
(920
)
 
(2.3)%
 
$
82,227

 
$
80,197

 
$
2,030

 
2.5%






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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Net income
$
16,271

 
$
15,954

 
$
31,543

 
$
26,671

Add:
 
 
 
 
 
 
 
General and administrative
8,972

 
7,301

 
18,289

 
14,645

Depreciation and amortization
28,381

 
24,522

 
55,904

 
46,518

Acquisition expenses
14

 
29

 
19

 
52

Interest expense
7,428

 
6,255

 
14,877

 
12,726

Deduct:
 
 
 
 
 
 
 
Management, leasing and development services
114

 
109

 
207

 
211

Interest income
66

 
668

 
163

 
1,325

Gains on sale of real estate

 
4,810

 

 
4,810

Net operating income (NOI)
$
60,886

 
$
48,474

 
$
120,262

 
$
94,266

Non-Stabilized Same Property Portfolio rental income
(22,257
)
 
(7,762
)
 
(41,969
)
 
(11,673
)
Non-Stabilized Same Property Portfolio property expenses
5,706

 
2,289

 
10,682

 
3,462

Stabilized Same Property Portfolio NOI
$
44,335

 
$
43,001

 
$
88,975

 
$
86,055

Straight line rental revenue adjustment
(3,196
)
 
(630
)
 
(3,842
)
 
(2,365
)
Amortization of above/below market lease intangibles
(1,417
)
 
(1,729
)
 
(2,906
)
 
(3,493
)
Stabilized Same Property Portfolio Cash NOI
$
39,722

 
$
40,642

 
$
82,227

 
$
80,197






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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Net income
$
16,271

 
$
15,954

 
$
31,543

 
$
26,671

Add:
 
 
 
 
 

 
 

Depreciation and amortization
28,381

 
24,522

 
55,904

 
46,518

Deduct:
 
 
 
 
 
 
 
Gains on sale of real estate

 
4,810

 

 
4,810

Funds From Operations (FFO)
$
44,652

 
$
35,666

 
$
87,447

 
$
68,379

Less: preferred stock dividends
(3,637
)
 
(2,424
)
 
(7,273
)
 
(4,847
)
Less: FFO attributable to noncontrolling interest(1)
(2,005
)
 
(1,021
)
 
(3,455
)
 
(1,754
)
Less: FFO attributable to participating securities(2)
(192
)
 
(182
)
 
(387
)
 
(358
)
Company share of FFO
$
38,818

 
$
32,039

 
$
76,332

 
$
61,420

 
 
 
 
 
 
 
 
Company Share of FFO per common share – basic
$
0.32

 
$
0.30

 
$
0.65

 
$
0.60

Company Share of FFO per common share – diluted
$
0.32

 
$
0.30

 
$
0.65

 
$
0.60

 
 
 
 
 
 
 
 
FFO
$
44,652

 
$
35,666

 
$
87,447

 
$
68,379

Adjust:
 
 
 
 
 
 
 
Acquisition expenses
14

 
29

 
19

 
52

Core FFO
$
44,666

 
$
35,695

 
$
87,466

 
$
68,431

Less: preferred stock dividends
(3,637
)
 
(2,424
)
 
(7,273
)
 
(4,847
)
Less: Core FFO attributable to noncontrolling interest(1)
(2,005
)
 
(1,021
)
 
(3,455
)
 
(1,754
)
Less: Core FFO attributable to participating securities(2)
(192
)
 
(182
)
 
(387
)
 
(358
)
Company share of Core FFO
$
38,832

 
$
32,068

 
$
76,351

 
$
61,472

 
 
 
 
 
 
 
 
Company share of Core FFO per common share – basic
$
0.32

 
$
0.30

 
$
0.65

 
$
0.60

Company share of Core FFO per common share – diluted
$
0.32

 
$
0.30

 
$
0.65

 
$
0.60

 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding – basic
119,810

 
105,848

 
116,932

 
102,116

Weighted-average shares of common stock outstanding – diluted
120,068

 
106,236

 
117,191

 
102,443

(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 (EXHIBIT 99.2)

Exhibit
Exhibit 99.2

404691456_q220cover.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
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
Guidance
24
Net Asset Value Components
25
Notes and Definitions
26-29
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 March 31, 2020, which was filed with the SEC on May 4, 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.

 
Second Quarter 2020
Supplemental Financial Reporting Package
Page 2

 404691456_logo3a20.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
Green Street Advisors
 
Eric Frankel
 
(949) 640-8780
J.P. Morgan
 
Michael W. Mueller, CFA
 
(212) 622-6689
Jefferies LLC
 
Jonathan Petersen
 
(212) 284-1705
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.

 
Second Quarter 2020
Supplemental Financial Reporting Package
Page 3

 404691456_logo3a20.jpg
 


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

 
Three Months Ended
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
Financial Results:
 
 
 
 
 
 
 
 
 
Total rental income
$
79,770

 
$
77,490

 
$
74,015

 
$
67,020

 
$
63,613

Net income
$
16,271

 
$
15,272

 
$
24,382

 
$
12,948

 
$
15,954

Net Operating Income (NOI)
$
60,886

 
$
59,376

 
$
55,859

 
$
50,855

 
$
48,474

Company share of Core FFO
$
38,832

 
$
37,519

 
$
35,754

 
$
33,853

 
$
32,068

Company share of Core FFO per common share - diluted
$
0.32

 
$
0.33

 
$
0.32

 
$
0.31

 
$
0.30

Adjusted EBITDA
$
55,982

 
$
55,566

 
$
52,232

 
$
49,271

 
$
45,342

Dividend declared per common share
$
0.215

 
$
0.215

 
$
0.185

 
$
0.185

 
$
0.185

Portfolio Statistics:
 
 
 
 
 
 
 
 
 
Portfolio rentable square feet (“RSF”) - consolidated(2)
27,633,778

 
27,303,260

 
26,425,208

 
24,752,305

 
23,812,518

Ending occupancy - consolidated portfolio(2)
95.4
 %
 
95.6
%
 
96.5
%
 
95.1
%
 
94.5
%
Stabilized occupancy - consolidated portfolio
97.0
 %
 
97.4
%
 
97.9
%
 
97.5
%
 
97.8
%
Leasing spreads - GAAP
32.3
 %
 
36.6
%
 
42.0
%
 
31.2
%
 
39.4
%
Leasing spreads - cash
18.2
 %
 
24.4
%
 
27.1
%
 
19.4
%
 
22.3
%
Stabilized Same Property Performance:
 
 
 
 
 
 
 
 
 
Stabilized Same Property Portfolio RSF
19,820,371

 
19,820,371

 
19,820,371

 
19,820,371

 
19,820,371

Stabilized Same Property Portfolio ending occupancy
97.6
 %
 
98.0
%
 
98.0
%
 
97.7
%
 
98.0
%
Stabilized Same Property Portfolio NOI growth(3)
3.1
 %
 
3.7
%
 
n/a

 
n/a

 
n/a

Stabilized Same Property Portfolio Cash NOI growth(3)
(2.3
)%
 
7.5
%
 
n/a

 
n/a

 
n/a

Capitalization:
 
 
 
 
 
 
 
 
 
Common stock price at quarter end
$
41.43

 
$
41.01

 
$
45.67

 
$
44.02

 
$
40.37

Common shares issued and outstanding
123,546,160

 
116,087,092

 
113,580,755

 
110,669,277

 
109,519,791

Total shares and units issued and outstanding at period end(4)
127,454,636

 
120,004,376

 
116,304,528

 
113,091,134

 
111,943,020

Weighted average shares outstanding - diluted
120,068,176

 
114,314,331

 
112,096,619

 
110,074,074

 
106,236,309

Series A, B and C Preferred Stock and Series 1 and 2 CPOP Units
$
319,068

 
$
319,068

 
$
278,281

 
$
278,281

 
$
192,031

Total equity market capitalization
$
5,599,514

 
$
5,240,447

 
$
5,589,909

 
$
5,256,553

 
$
4,711,171

Total consolidated debt
$
908,250

 
$
905,645

 
$
860,958

 
$
860,999

 
$
761,038

Total combined market capitalization (net debt plus equity)
$
6,253,391

 
$
6,033,660

 
$
6,372,010

 
$
5,920,044

 
$
5,300,000

Ratios:
 
 
 
 
 
 
 
 
 
Net debt to total combined market capitalization
10.5
 %
 
13.1
%
 
12.3
%
 
11.2
%
 
11.1
%
Net debt to Adjusted EBITDA (quarterly results annualized)
2.9x

 
3.6x

 
3.7x

 
3.4x

 
3.2x

(1)
For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section and reconciliation section beginning on page 26 and page 8 of this report, respectively.
(2)
Consolidated portfolio RSF and ending occ. % for Q1'20, Q4'19, Q3'19 and Q2'19 have been restated to remove the RSF of the following bldgs that were acquired vacant w/ the intent to demolish the existing bldg & construct a new bldg: 12,000 RSF at 9615 Norwalk Blvd. (acquired Q2’15), 49,976 RSF at 851 Lawrence Dr. (acquired Q2’18) and 63,900 RSF at 415 Motor Ave. (acquired Q4’19).
(3)
Represents the year over year percentage change in NOI and Cash NOI for the Stabilized Same Property Portfolio.
(4)
Includes the following # of OP Units and vested LTIP units held by noncontrolling interests: 3,908,476 (Jun 30, 2020), 3,917,284 (Mar 31, 2020), 2,723,773 (Dec 31, 2019), 2,421,857 (Sep 30, 2019) and 2,423,229 (Jun 30, 2019). Excludes the following # of shares of unvested restricted stock: 243,039 (Jun 30, 2020), 244,255 (Mar 31, 2020), 212,545 (Dec 31, 2019), 214,995 (Sep 30, 2019) and 219,789 (Jun 30, 2019). Excludes unvested LTIP units and unvested performance units.

 
Second Quarter 2020
Supplemental Financial Reporting Package
Page 4

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Consolidated Balance Sheets.
 
 
 
 
(unaudited and in thousands)
 
June 30, 2020
 
March 31, 2020
 
December 31, 2019
 
September 30, 2019
 
June 30, 2019
ASSETS
 
 
 
 
 
 
 
 
 
Land
$
2,128,243

 
$
2,068,460

 
$
1,927,098

 
$
1,728,490

 
$
1,590,321

Buildings and improvements
1,770,930

 
1,748,675

 
1,680,178

 
1,611,060

 
1,528,750

Tenant improvements
77,211

 
75,341

 
72,179

 
68,124

 
66,665

Furniture, fixtures, and equipment
141

 
141

 
141

 
141

 
141

Construction in progress
39,860

 
26,791

 
18,794

 
29,094

 
23,576

  Total real estate held for investment
4,016,385

 
3,919,408

 
3,698,390

 
3,436,909

 
3,209,453

Accumulated depreciation
(337,938
)
 
(316,812
)
 
(296,777
)
 
(278,726
)
 
(261,231
)
Investments in real estate, net
3,678,447

 
3,602,596

 
3,401,613

 
3,158,183

 
2,948,222

Cash and cash equivalents
254,373

 
112,432

 
78,857

 
197,508

 
172,209

Restricted cash
67

 
46

 

 

 
11,055

Rents and other receivables, net
4,790

 
5,859

 
5,889

 
4,376

 
3,614

Deferred rent receivable, net
37,552

 
31,339

 
29,671

 
27,502

 
25,462

Deferred leasing costs, net
20,269

 
19,482

 
18,688

 
17,561

 
16,722

Deferred loan costs, net
2,599

 
2,770

 
695

 
849

 
1,004

Acquired lease intangible assets, net(1)
71,513

 
76,138

 
73,090

 
67,110

 
61,664

Acquired indefinite-lived intangible
5,156

 
5,156

 
5,156

 
5,156

 
5,156

Interest rate swap asset

 

 
766

 
374

 
1,414

Other assets
16,656

 
10,717

 
9,671

 
10,778

 
14,204

Acquisition related deposits
63,612

 
5,896

 
14,526

 
8,415

 
4,615

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

 

 

 
4,582

 

Total Assets
$
4,155,034


$
3,872,431

 
$
3,638,622

 
$
3,502,394

 
$
3,265,341

LIABILITIES & EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 

 
 
Notes payable
$
906,687

 
$
903,802

 
$
857,842

 
$
857,688

 
$
757,677

Interest rate swap liability
22,916

 
22,690

 
8,488

 
10,727

 
8,671

Accounts payable, accrued expenses and other liabilities
33,731

 
39,000

 
31,112

 
34,669

 
26,065

Dividends payable
27,532

 
25,931

 
21,624

 
21,034

 
20,823

Acquired lease intangible liabilities, net(3)
61,108

 
63,914

 
59,340

 
56,151

 
55,084

Tenant security deposits
26,158

 
30,342

 
28,779

 
27,688

 
26,123

Prepaid rents
11,163

 
8,074

 
8,988

 
7,759

 
6,289

Liabilities associated with real estate held for sale(2)

 

 

 
135

 

Total Liabilities
1,089,295

 
1,093,753

 
1,016,173

 
1,015,851

 
900,732

Equity
 
 
 
 
 
 

 
 
Preferred stock
242,327

 
242,327

 
242,327

 
242,529

 
159,094

Common stock
1,236

 
1,162

 
1,136

 
1,106

 
1,095

Additional paid in capital
2,820,216

 
2,524,274

 
2,439,007

 
2,306,282

 
2,255,849

Cumulative distributions in excess of earnings
(147,907
)
 
(132,843
)
 
(118,751
)
 
(117,711
)
 
(107,056
)
Accumulated other comprehensive income
(22,214
)
 
(21,950
)
 
(7,542
)
 
(10,132
)
 
(7,101
)
Total stockholders’ equity
2,893,658

 
2,612,970

 
2,556,177

 
2,422,074

 
2,301,881

Noncontrolling interests
172,081

 
165,708

 
66,272

 
64,469

 
62,728

Total Equity
3,065,739

 
2,778,678

 
2,622,449

 
2,486,543

 
2,364,609

Total Liabilities and Equity
$
4,155,034

 
$
3,872,431

 
$
3,638,622

 
$
3,502,394

 
$
3,265,341

(1)
Includes net above-market tenant lease intangibles of $6,230 (June 30, 2020), $6,410 (March 31, 2020), $6,675 (December 31, 2019), $5,517 (September 30, 2019) and $5,450 (June 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.

 
Second 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
 
Jun 30, 2020
 
Mar 31, 2020
 
Dec 31, 2019
 
Sep 30, 2019
 
Jun 30, 2019
Revenues
 
 
 
 
 
 
 
 
 
Rental income(1)
$
79,770

 
$
77,490

 
$
74,015


$
67,020

 
$
63,613

Management, leasing, and development services
114

 
93

 
105


90

 
109

Interest income
66

 
97

 
279


951

 
668

Total Revenues
79,950

 
77,680

 
74,399


68,061

 
64,390

Operating Expenses
 
 
 
 


 
 
 
Property expenses
18,884

 
18,114

 
18,156


16,165

 
15,139

General and administrative
8,972

 
9,317

 
8,215


7,440

 
7,301

Depreciation and amortization
28,381

 
27,523

 
26,877


25,496

 
24,522

Total Operating Expenses
56,237

 
54,954

 
53,248


49,101

 
46,962

Other Expenses
 
 
 
 


 
 
 
Acquisition expenses
14

 
5

 
(3
)

122

 
29

Interest expense
7,428

 
7,449

 
7,364


6,785

 
6,255

Total Expenses
63,679

 
62,408

 
60,609


56,008

 
53,246

Gains on sale of real estate

 

 
10,592


895

 
4,810

Net Income
16,271

 
15,272

 
24,382


12,948

 
15,954

Less: net income attributable to noncontrolling interests
(1,084
)
 
(717
)
 
(734
)

(518
)
 
(569
)
Net income attributable to Rexford Industrial Realty, Inc.
15,187

 
14,555

 
23,648


12,430

 
15,385

Less: preferred stock dividends
(3,637
)
 
(3,636
)
 
(3,636
)

(2,572
)
 
(2,424
)
Less: earnings allocated to participating securities
(129
)
 
(131
)
 
(108
)

(112
)
 
(113
)
Net income attributable to common stockholders
$
11,421

 
$
10,788

 
$
19,904


$
9,746

 
$
12,848

 
 
 
 
 



 

Earnings per Common Share
 
 
 
 



 

Net income attributable to common stockholders per share - basic
$
0.10

 
$
0.09

 
$
0.18


$
0.09

 
$
0.12

Net income attributable to common stockholders per share - diluted
$
0.10

 
$
0.09

 
$
0.18


$
0.09

 
$
0.12

 
 
 
 
 


 
 
 
Weighted average shares outstanding - basic
119,810,283
 
114,054,434
 
111,612,279
 
109,645,216
 
105,847,557
Weighted average shares outstanding - diluted
120,068,176
 
114,314,331
 
112,096,619
 
110,074,074
 
106,236,309
(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.



 
Second 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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Revenues
 
 
 
 
 
 
 
Rental income(1)
$
79,770

 
$
63,613

 
$
157,260

 
$
123,217

Management, leasing, and development services
114

 
109

 
207

 
211

Interest income
66

 
668

 
163

 
1,325

Total Revenues
79,950

 
64,390

 
157,630

 
124,753

Operating Expenses
 
 
 
 
 
 
 
Property expenses
18,884

 
15,139

 
36,998

 
28,951

General and administrative
8,972

 
7,301

 
18,289

 
14,645

Depreciation and amortization
28,381

 
24,522

 
55,904

 
46,518

Total Operating Expenses
56,237

 
46,962

 
111,191

 
90,114

Other Expenses
 
 
 
 
 
 
 
Acquisition expenses
14

 
29

 
19

 
52

Interest expense
7,428

 
6,255

 
14,877

 
12,726

Total Expenses
63,679

 
53,246

 
126,087

 
102,892

Gains on sale of real estate

 
4,810

 

 
4,810

Net Income
16,271

 
15,954

 
31,543

 
26,671

 Less: net income attributable to noncontrolling interests
(1,084
)
 
(569
)
 
(1,801
)
 
(770
)
Net income attributable to Rexford Industrial Realty, Inc.
15,187

 
15,385

 
29,742

 
25,901

 Less: preferred stock dividends
(3,637
)
 
(2,424
)
 
(7,273
)
 
(4,847
)
 Less: earnings allocated to participating securities
(129
)
 
(113
)
 
(260
)
 
(227
)
Net income attributable to common stockholders
$
11,421

 
$
12,848