Rexford Industrial Realty, Inc. · NYSE:REXR
Rexford Industrial Realty — Q2 2015 Earnings Presentation
29 slides from Rexford Industrial Realty's earnings presentation, Aug 5, 2015
Slide 1: Supplemental Financial Reporting Package Second Quarter 2015
Supplemental Financial Repor .. ng Package Second 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 and Disclosures
Table of Contents Section Page Corporate Data: Investor Company Summary. 3 Financial and Portfolio Highlights and Common Stock Data4 Consolidated and Combined Financial Results: Consolidated and Combined Balance Sheet5 Consolidated and Combined Statement of Operations. 6 - 7 Non- GAAP FFO and AFFO R
Slide 3: Investor Company Summary
Investor Company Summary Howard Schwimmer Michael S. Frankel Adeel Khan Patrick Schlehuber Bruce Herbkersman Shannon Lewis Ashley Arthur Senior Management Team Co- Chief Executive Officer, Director Co- Chief Executive Officer, Director Chief Financial Officer Director of Acquisitions Director of Con
Slide 4: Financial and Portfolio Highlights and Common Stock Data
Financial and Portfolio Highlights and Common Stock Data (1) (in thousands except per share figures and portfolio statistics) Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 Financial Results: Total rental revenues $ 22,442 $ 21,063 $ 19,576 $ 17,75
Slide 5: Consolidated Balance Sheets
Consolidated Balance Sheets ( unaudited and in thousands) Rexford Industrial Realty, Inc. 6/ 30/ 15 3/ 31/ 15 12/ 31/ 14(1) 9/ 30/ 14(1) 6/ 30/ 14(1) Assets Investments in real estate, net $ 955,365 $ 902,747 $ 853,578 $ 722,689 $ 651,920 Cash and cash equivalents 9,988 47,541 8,606 60,541 9,272 Res
Slide 6: Consolidated Statements of Operations Quarterly Results
Consolidated Statements of Operations Quarterly Results ( unaudited and in thousands, except share count and per share figures) Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 Revenues Rental income $ 19,275 $ 18,557 16,719$ 15,516$ $ 12,773 Tenant
Slide 7: Consolidated Statements of Operations
Consolidated Statements of Operations (in thousands) Quarterly Results ( unaudited results) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Rental Revenues Rental income $ 19,275 12,773$ $ 37,832 24,401$ Tenant reimbursements 2,844 1,681 5,028 3,192 Management, leasing, and
Slide 8: Non-GAAP FFO
Non- GAAP FFO (1) (in thousands) ( unaudited results) Rexford Industrial Realty, Inc. Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 Funds From Operations (FFO) Net Income (loss) 196$ 81$ 145$ (679) $ 81$ Add: Depreciation and amortization, includi
Slide 9: Non-GAAP AFFO
Non- GAAP AFFO (1) (in thousands) ( unaudited results) AFFO Rexford Industrial Realty, Inc. Three Months Ended June 30, 2015 March 31, 2015(2) December 31, 2014(2) September 30, 2014(2) June 30, 2014(2) Adjusted Funds From Operations (AFFO) Funds From Operations $ 10,706 $ 9,993 $ 8,651 $ 7,606 $ 6,
Slide 10: Statement of Operations Reconciliations
Statement of Operations Reconciliations (1) (in thousands) ( unaudited results) Rexford Industrial Realty, Inc. Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 Net Operating Income ( NOI) Rental income 19,275$ 18,557$ 16,719$ 15,516$ $ 12,773 Tenant
Slide 11: Statement of Operations Reconciliations
Statement of Operations Reconciliations (1) (in thousands) ( unaudited results) Rexford Industrial Realty, Inc. Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 June 30, 2014 Net income ( loss) $ 196 $ 81 $ 145 $ (679) $ 81 Interest expense 1,658 1,826 1,655 1,957
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 June 30, Six Months Ended June 30, 2015 2014 $ Change % Change 2015 2014 $ Change % Change Rental Revenues Re
Slide 13: Same Property Portfolio Performance: NOI Reconciliation and Occupancy
Same Property Portfolio Performance (1) (in thousands) NOI Reconciliation, Portfolio Summary and Occupancy ( unaudited results) Same Property Portfolio NOI Reconciliation Continued: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 11,982 $ 11,505 $ 1,665 1,489 86 19 13,733 13,013 720
Slide 14: Joint Venture Financial Summary
Joint Venture Financial Summary (in thousands) Balance Sheet ( unaudited results) Mission Oaks (1) June 30, 2015 March 31, 2015 December 31, 2014 September 30, 2014 Assets: Investments in real estate, net 20,690$ 20,635$ 20,268$ 56,488$ Cash and cash equivalents 2,891 2,573 2,331 1,105 Rents and oth
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) Income Statement Rental revenues Tenant reimbursements Other operating revenues Total revenue $ June 30, 2015 373 312 -685 $ Three Months Ended March 31, 2015 Dec
Slide 16: Capitalization Summary
Capitalization Summary ( unaudited results) Capitalization as of June 30, 2015 Description Common shares (1) June 30, 2015 55,051,832 March 31, 2015 December 31, 2014 September 30, 2014 54,909,083 43,382,425 43,059,742 June 30, 2014 25,420,381 Operating partnership units Total shares and units at pe
Slide 17: Debt Summary
Debt Summary (in thousands) ( unaudited results) Debt Detail: As of June 30, 2015 Initial Maturity Date w/ Stated/ Swapped Effective Debt Description Maturity Date Extensions Interest Rate Interest Rate Principal Balance Secured Debt: Glendale Commerce Center 5/ 1/ 2016 5/ 1/ 2018 LIBOR + 2.00% 2.18
Slide 18: Debt Covenants
Debt Covenants (unaudited results) Unsecured Revolving Credit Facility and Term Loan Facility Covenants(1) Covenant June 30, 2015 March 31, 2015 Maximum Leverage Ratio less than 60% 28.1% 26.6% Maximum Secured Leverage Ratio less than 45% 15.1% 16.7% Maximum Recourse Debt less than 15% 1.0% 1.1% Min
Slide 19: Portfolio Overview at 6/30/15
Portfolio Overview at 6/30/15 ( unaudited results) Consolidated Portfolio: Annualized Base Rent Total Market # Properties % Owned Pro- rata Sq. Ft. Occ. % (in thousands) (1) per SF Greater San Fernando Valley 23 100.0% 2,614,216 76.2% 18,867$ $9.47 San Gabriel Valley 11 100.0% 1,264,918 99.5% 9,720
Slide 20: Occupancy and Leasing Trends
Occupancy and Leasing Trends ( unaudited results, data represents consolidated portfolio only on a pro rata basis) Occupancy by County: Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 Sep. 30, 2014 Jun. 30, 2014 Occupancy: Los Angeles County 87.7% 87.1% 91.0% 95.7% 92.7% Orange County 84.4% 92.6% 92.1% 90
Slide 21: Leasing Statistics
Leasing Statistics ( unaudited results, data represents consolidated portfolio only on a pro rata basis) Leasing Activity: # Leases Signed SF of Leasing Wtd. Avg. Lease Term Rent Change - Cash Rent Change - GAAP Second Quarter 2015: New 57 283,695 3.8 7.1% 14.4% Renewal (1) 85 442,019 2.0 6.9% 15.9%
Slide 22: Top Tenants and Lease Segmentation
Top Tenants and Lease Segmentation ( unaudited results, data represents consolidated portfolio only on a pro rata basis) Top 10 Tenants: % of Total Ann. Ann. Base Rent Tenant Submarket Leased SF Base Rent per SF Lease Expiration Cosmetic Laboratories of America, LLC LA - San Fern. Valley 319,348 2.2
Slide 23: Capital Expenditure Summary
Capital Expenditure Summary ( unaudited results, data represents consolidated portfolio only on a pro rata basis) Quarter Ended June 30, 2015: Tenant Improvements: New Leases 1st Generation New Leases 2nd Generation Renewals $ $ $ Amount 199,000 503,000 67,000 SF(1) 141,063 347,941 150,365 $ $ $ PSF
Slide 24: Properties and Space Under Repositioning
Properties and Space Under Repositioning As of June 30, 2015 ( unaudited results, in thousands, except square footage) Repositioning Properties Est. Construction Period Costs Incurred Estimated Estimated Cumulative Actual Cash Annual Period to Rentable Acquisition Purchase Investment- to- Projected
Slide 25: Acquisitions and Dispositions Summary
Acquisitions and Dispositions Summary ( unaudited results, data presented on a wholly owned basis) Acquisitions: Price Occ. % at Occ. % at Date Property Address Submarket SF ($ in MM) Acquisition June 30, 2015 Nov- 14 679 Anderson 679- 691 S. Anderson St. LA - Central 47,490 $6.5 100% 100% Nov- 14 7
Slide 26: Net Asset Value Components at 6/30/15
Net Asset Value Components at 6/30/15 ( unaudited and in thousands, except share count) Net Operating Income For the Three Months Ended ProForma Net Operating Income (NOI) (1)(2) June 30, 2015 Total operating revenues $ 22,281 Property operating expenses ( 5,874) Pro forma effect of acquisitions(3)
Slide 27: Fixed Charge Coverage Ratio at 6/30/15
Fixed Charge Coverage Ratio at 6/30/15 ( unaudited and in thousands) For the Three Months Ended June 30, 2015 March 31, 2015 December 31, 2014 EBITDA $ 12,364 $ 11,819 $ 10,334 Recurring cash distributions from unconsolidated joint ventures 37 34 89 Fair value lease expense 46 39 115 Non- cash stock
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,
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 i
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