Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q3 2015 Earnings Presentation
29 slides from Rexford Industrial Realty's earnings presentation, Nov 4, 2015
Slide 1: Supplemental Financial Reporting Package Third Quarter 2015
Supplemental Financial Reporting Package Third Quarter 2015 Rexford Industrial Realty, Inc. NYSE: REXR 11620 Wilshire Blvd Suite 1000 Los Angeles, CA 90025 310-966-1680 www.RexfordIndustrial.com
Slide 2: Table of Contents
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 and AFFO Reconciliations 8 - 9 Statement of Opera
Slide 3: Investor Company Summary
Investor Company Summary Senior Management Team Howard Schwimmer Co-Chief Executive Officer, Director Michael S. Frankel Co-Chief Executive Officer, Director Adeel Khan Chief Financial Officer Patrick Schlehuber Director of Acquisitions Bruce Herbkersman Director of Construction & Development Shanno
Slide 4: Financial and Portfolio Highlights and Common Stock Data
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, 2015June 30, 2015March 31, 2015December 31, 2014September 30, 2014 Financial Results: Total rental revenues(2) $ 23,335 $ 22,281 $ 20,
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets (unaudited and in thousands) 9/30/156/30/153/31/1512/31/14(1)9/30/14(1) Assets Investments in real estate, net $1,010,384 $955,365 $902,747 $853,578 $722,689 Cash and cash equivalents 5,083 9,988 47,541 8,606 60,541 Restricted cash 307 Notes receivable - 13,137 13,135 13,
Slide 6: Consolidated Statements of Operations - Quarterly Results
Consolidated Statements of Operations Quarterly Results (unaudited and in thousands, except share and per share data) Three Months Ended September 30, 2015June 30, 2015March 31, 2015December 31, 2014September 30, 2014 Revenues Rental income $ 20,617 $ 19,275 $ 18,557 $ 16,719 $ 15,516 Tenant reimbur
Slide 7: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands) Quarterly Results (unaudited results) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Rental Revenues Rental income $ 20,617 $ 15,516 $ 58,449 $ 39,917 Tenant reimbursements 2,377 2,052 7,405 5,244 Other income
Slide 8: Non-GAAP FFO
Non-GAAP FFO (1) (unaudited and in thousands, except share and per share data) Rexford Industrial Realty, Inc. Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 Funds From Operations (FFO) Net Income (loss) $ 617 $ 196 $ 81 $ 145 $ (679) Add: Dep
Slide 9: Non-GAAP AFFO
Non-GAAP AFFO (1) (in thousands) (unaudited results) AFFO Rexford Industrial Realty, Inc. Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015(2) December 31, 2014(2) September 30, 2014(2) Adjusted Funds From Operations (AFFO) Funds From Operations $ 11,263 $ 10,706 $ 9,993 $ 8,651 $ 7
Slide 10: Statement of Operations Reconciliations
Statement of Operations Reconciliations (1) (in thousands) (unaudited results) Rexford Industrial Realty, Inc. Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 Net Operating Income (NOI) Rental income $ 20,617 $ 19,275 $ 18,557 $ 16,719 $ 15,516
Slide 11: Statement of Operations Reconciliations
Statement of Operations Reconciliations (1) (in thousands) (unaudited results) Rexford Industrial Realty, Inc. Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 Net income (loss) $ 617 $ 196 $ 81 $ 145 $ (679) Interest expense 2,245 1,658 1,826 1
Slide 12: Same Property Portfolio Performance
Same Property Portfolio Performance (1) (in thousands) Statement of Operations and NOI Reconciliation (unaudited results) Same Property Portfolio Statement of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 $ Change % Change 2015 2014 $ Change % Change Rental R
Slide 13: Same Property Portfolio Performance - NOI Reconciliation
Same Property Portfolio Performance (1) (dollars in thousands) NOI Reconciliation, Portfolio Summary and Occupancy (unaudited results) Same Property Portfolio NOI Reconciliation Continued: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 $ Change % Change 2015 2014 $ Change
Slide 14: Joint Venture Financial Summary - Balance Sheet
Joint Venture Financial Summary (in thousands) Balance Sheet (unaudited results) Mission Oaks (1) September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 Assets: Investments in real estate, net $ 21,153 $ 20,690 $ 20,635 $ 20,268 Cash and cash equivalents 2,631 2,891 2,573 2,331 Rents and
Slide 15: Joint Venture Financial Summary - Statement of Operations
Joint Venture Financial Summary (1) (in thousands) Statement of Operations (unaudited results) Statement of Operations: Mission Oaks (2) Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 Income Statement Rental revenues $ 502 $ 373 $ 348 $ 807 Tenant reimbursements
Slide 16: Capitalization Summary
Capitalization Summary (unaudited and in thousands, except share and per share data) Capitalization as of September 30, 2015 Description September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 Common shares (1) 55,198,780 55,051,832 54,909,083 43,382,425 43,059,742 Opera
Slide 17: Debt Summary
Debt Summary (in thousands) (unaudited results) Debt Detail: As of September 30, 2015 Description Maturity Date Stated Interest Rate Effective Interest Rate(1) Principal Balance Maturity Date of Effective Swaps Secured Debt: $60M Term Loan 8/1/2019(2) LIBOR + 1.90% 3.818% $ 60,000 2/15/2019 Gilbert/
Slide 18: Debt Covenants
Debt Covenants (unaudited results) Unsecured Revolving Credit Facility and Term Loan Facility Covenants(1) Covenant September 30, 2015 June 30, 2015 March 31, 2015 Maximum Leverage Ratio less than 60% 30.2% 28.1% 26.6% Maximum Secured Leverage Ratio less than 45% 6.2% 15.1% 16.7% Maximum Secured Rec
Slide 19: Portfolio Overview at 9/30/15
Portfolio Overview at 9/30/15 (unaudited results) Consolidated Portfolio: Rentable Square Feet Occupancy Annualized Base Rent Market # Properties Same Properties Portfolio Non-Same Properties Portfolio(1) Total Portfolio Same Properties Portfolio Non-Same Properties Portfolio(1) Total Portfolio Tota
Slide 20: Occupancy and Leasing Trends
Occupancy and Leasing Trends (unaudited results, data represents consolidated portfolio only) Occupancy by County: Sep. 30, 2015 Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sep. 30, 2014 Occupancy: Los Angeles County 86.1% 87.7% 87.1% 91.0% 95.7% Orange County 85.1% 84.4% 92.6% 92.1% 90.3% San Bernard
Slide 21: Leasing Statistics
Leasing Statistics (unaudited results, data represents consolidated portfolio only) Leasing Activity: # Leases Signed SF of Leasing Wtd. Avg. Lease Term Rent Change - Cash Rent Change - GAAP Third Quarter 2015: New 38 216,499 4.0 5.0% 18.0% Renewal (1) 69 323,085 2.5 5.6% 15.5% Total/Weighted Averag
Slide 22: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation (unaudited results, data represents consolidated portfolio only) Top 10 Tenants: Tenant Submarket Leased SF % of Total Ann. Base Rent Ann. Base Rent per SF Lease Expiration Cosmetic Laboratories of America, LLC LA - San Fern. Valley 319,348 2.1% $5.64 6/30/2020 Val
Slide 23: Capital Expenditure Summary
Capital Expenditure Summary (unaudited results, in thousands, except square feet and per square foot data) (data represents consolidated portfolio only) Quarter Ended September 30, 2015: Amount SF(1) PSF Tenant Improvements: New Leases - 1st Generation $ 172 132,821 $ 1.29 New Leases - 2nd Generatio
Slide 24: Properties and Space Under Repositioning
Properties and Space Under Repositioning As of September 30, 2015 (unaudited results, in thousands, except square feet) Repositioning Properties Est. Construction Period Costs Incurred Property (Submarket) Rentable Square Feet Acquisition Date Start Completion Purchase Price Repositioning Cumulative
Slide 25: Current Year Acquisitions Summary
Current Year Acquisitions Summary (unaudited results, data represents consolidated portfolio only) 2015 Acquisitions: Acquisition Date Property Address County Submarket Rentable Square Feet Price ($ in MM) Occ. % at Acquisition Occ. % at September 30, 2015 1/21/2015 12907 Imperial Highway Los Angele
Slide 26: Net Asset Value Components at 9/30/15
Net Asset Value Components at 9/30/15 (unaudited and in thousands, except share data) Net Operating Income ProForma Net Operating Income (NOI)(1)(2) For the Three Months Ended September 30, 2015 Total operating revenues $ 23,335 Property operating expenses (6,237) Pro forma effect of acquisitions(3)
Slide 27: Fixed Charge Coverage Ratio at 9/30/15
Fixed Charge Coverage Ratio at 9/30/15 (unaudited and in thousands) For the Three Months Ended September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 EBITDA $ 13,508 $ 12,364 $ 11,819 $ 10,334 Recurring cash distributions from unconsolidated joint ventures 54 37 34 89 Fair value lease exp
Slide 28: Definitions / Discussion of Non-GAAP Financial Measures
Definitions / Discussion of Non-GAAP Financial Measures Adjusted Funds from Operations (AFFO): We calculate adjusted funds from operations, or AFFO, by adding to or subtracting from FFO (i) non-cash operating revenues and expenses, (ii) capitalized operating expenditures such as leasing payroll, (ii
Slide 29: Definitions / Discussion of Non-GAAP Financial Measures
Definitions / Discussion of Non-GAAP Financial Measures NOI: Includes the revenue and expense directly attributable to our real estate properties calculated in accordance with GAAP. Calculated as total revenue from real estate operations including i) rental revenues ii) tenant reimbursements, and ii
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