Table of Contents.

Section

Page

Corporate Data:

Investor Company Summary............................................................................................................................................................................................................................

3

Company Overview............................................................................................................................................................................................................................................

4

Highlights - Consolidated Financial Results...................................................................................................................................................................................................

5

Financial and Portfolio Highlights andCapitalization Data..........................................................................................................................................................................

6

Guidance..............................................................................................................................................................................................................................................................

7

Consolidated Financial Results:

Consolidated Balance Sheets..........................................................................................................................................................................................................................

9

Consolidated Statements of Operations.........................................................................................................................................................................................................

10

Non-GAAPFFO, Core FFO and AFFO Reconciliations..............................................................................................................................................................................

12

Statement of Operations Reconciliations.......................................................................................................................................................................................................

15

Same Property Portfolio Performance............................................................................................................................................................................................................

16

Capitalization Summary....................................................................................................................................................................................................................................

17

Debt Summary....................................................................................................................................................................................................................................................

18

Portfolio Data:

Operations...........................................................................................................................................................................................................................................................

20

Portfolio Overview..............................................................................................................................................................................................................................................

21

Occupancy and Leasing Trends......................................................................................................................................................................................................................

22

Leasing Statistics................................................................................................................................................................................................................................................

23

Top Tenants and Lease Segmentation............................................................................................................................................................................................................

25

Capital Expenditure Summary.........................................................................................................................................................................................................................

26

Properties and Space Under Repositioning/Redevelopment......................................................................................................................................................................

27

Current Year Acquisitions and Dispositions Summary.................................................................................................................................................................................

30

Net Asset Value Components...........................................................................................................................................................................................................................

32

Notes and Definitions.........................................................................................................................................................................................................................................

33

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 2020 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission ("SEC") on February 19, 2021. 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 2021

Page 2

Supplemental Financial Reporting Package

Investor Company Summary.

Executive Management Team

Howard Schwimmer

Co-Chief Executive Officer, Director

Michael S. Frankel

Co-Chief Executive Officer, Director

Laura Clark

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

Diana J. Ingram

Director

Debra L. Morris

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

Baird

David Rodgers

(216) 737-7341

Berenberg Capital Markets

Connor Siversky

(646) 949-9037

Capital One

Chris Lucas

(571) 633-8151

Citigroup Investment Research

Emmanuel Korchman

(212) 816-1382

Green Street

Vince Tibone

(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.

Third Quarter 2021

Page 3

Supplemental Financial Reporting Package

Company Overview.

As of September 30, 2021

Third Quarter 2021

Page 4

Supplemental Financial Reporting Package

Highlights - Consolidated Financial Results.

Quarterly Results

(in millions)

Net Operating Income (NOI)

(40% Year-over-Year Growth)

$100

$87.8

$79.7

$80

$76.1

$66.5

$62.9

$60

$40

$20

$0

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Adjusted EBITDA

(58% Year-over-Year Growth)

$100

$89.0

$80

$65.3

$69.5

$75.7

$56.4

$60

$40

$20

$0

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Company Share of Core FFO

(47% Year-over-Year Growth)

$70

$59.6

$60

$52.8

$48.4

$50

$43.1

$40.6

$40

$30

$20

$10

$0

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Adjusted Funds From Operations (AFFO)

(49% Year-over-Year Growth)

$60

$50

$51.0

$43.4

$38.6

$41.1

$40

$34.2

$30

$20

$10

$0

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Third Quarter 2021

Page 5

Supplemental Financial Reporting Package

Financial and Portfolio Highlights and Capitalization Data. (1)

(in thousands except share and per share data and portfolio statistics)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Financial Results:

Total rental income

$

115,260

$

104,236

$

99,644

$

88,495

$

83,622

Net income

$

40,186

$

26,037

$

30,643

$

18,155

$

31,197

Net Operating Income (NOI)

$

87,759

$

79,681

$

76,069

$

66,461

$

62,938

Company share of Core FFO

$

59,592

$

52,789

$

48,364

$

43,099

$

40,557

Company share of Core FFO per common share - diluted

$

0.43

$

0.39

$

0.37

$

0.34

$

0.33

Adjusted EBITDA

$

88,988

$

75,675

$

69,521

$

65,328

$

56,384

Dividend declared per common share

$

0.240

$

0.240

$

0.240

$

0.215

$

0.215

Portfolio Statistics:

Portfolio rentable square feet ("RSF")

34,932,613

32,955,385

32,087,821

31,501,111

27,711,078

Ending occupancy

96.1 %

95.4 %

95.8 %

95.2%

97.2%

Stabilized occupancy

98.4 %

98.2 %

98.3 %

96.7%

97.9%

Rent Change - GAAP

54.3 %

33.9 %

47.1 %

29.9%

26.8%

Rent Change - Cash

38.5 %

21.3 %

32.7 %

18.1%

17.4%

Same Property Portfolio Performance(2):

Same Property Portfolio ending occupancy(3)

98.8 %

98.4 %

98.6 %

98.2%

98.3%

Same Property Portfolio NOI growth(3)(4)

9.7 %

10.1 %

6.8 %

Same Property Portfolio Cash NOI growth(3)(4)

13.3 %

22.1 %

8.3 %

Capitalization:

Total shares and units issued and outstanding at period end(5)

157,609,745

143,920,170

140,299,354

137,799,832

127,455,361

Series A, B and C Preferred Stock and Series 1 and 2 CPOP Units(6)

$

229,068

$

319,068

$

319,068

$

319,068

$

319,068

Total equity market capitalization

$

9,173,421

$

8,515,322

$

7,390,155

$

7,086,418

$

6,151,425

Total consolidated debt

$

1,400,552

$

1,226,083

$

1,226,415

$

1,223,494

$

908,046

Total combined market capitalization (net debt plus equity)

$

10,513,819

$

9,677,186

$

8,492,637

$

8,133,619

$

6,815,852

Ratios:

Net debt to total combined market capitalization

12.7 %

12.0 %

13.0 %

12.9%

9.7%

Net debt to Adjusted EBITDA (quarterly results annualized)

3.8x

3.8x

4.0x

4.0x

2.9x

  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 33 and page 12 of this report, respectively.
  2. The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.
  3. For comparability, Same Property Portfolio ending occupancy, NOI growth and Cash NOI growth for all comparable periods has been restated to remove the results of 5803 Newton Drive, which was sold during Q3'21. See page 31 for details related to dispositions.
  4. Represents the year over year percentage change in NOI and Cash NOI for the Same Property Portfolio.
  5. Includes the following # of OP Units/vested LTIP units held by noncontrolling interests: 6,415,276 (Sep 30, 2021), 6,428,125 (Jun 30, 2021), 6,641,742 (Mar 31, 2021), 6,606,693 (Dec 31, 2020) and
    3,903,509 (Sep 30, 2020). Excludes the following # of shares of unvested restricted stock: 250,439 (Sep 30, 2021), 235,953 (Jun 30, 2021), 239,748 (Mar 31, 2021), 232,899 (Dec 31, 2020) and 236,739 (Sep 30, 2020). Excludes unvested LTIP units and unvested performance units.
  6. On August 16, 2021, we redeemed all 3,600,000 shares of our 5.875% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") at a redemption price equal to the stated liquidation preference of $25.00 per share, representing $90,000 in aggregate, plus all accrued and unpaid dividends.

Third Quarter 2021

Page 6

Supplemental Financial Reporting Package

Guidance.

As of September 30, 2021

2021 OUTLOOK*

2021 GUIDANCE / ASSUMPTIONS

METRIC

Q3'21 UPDATED

Q2'21 GUIDANCE

YTD RESULTS AS OF

GUIDANCE

SEPTEMBER 30, 2021

Net Income Attributable to Common Stockholders per diluted share (1)(2)

$0.70

- $0.71

$0.53

- $0.56

$0.57

Company share of Core FFO per diluted share (1)(2)

$1.60

- $1.61

$1.48

- $1.51

$1.19

Same Property Portfolio NOI Growth - GAAP (3)

8.25%

- 8.75%

5.75%

- 6.75%

8.9%

Same Property Portfolio NOI Growth - Cash (3)

11.50% - 12.00%

9.00% - 10.00%

14.3%

Average Same Property Portfolio Occupancy (FY) (3)

98.0%

- 98.5%

97.75%

- 98.25%

98.5%

General and Administrative Expenses (4)

$46.0M

- $47.0M

$45.0M

- $46.0M

$34.0M

Net Interest Expense

$39.5M

- $40.0M

$36.0M

- $36.5M

$29.8M

  1. Our 2021 Net Income and Core FFO guidance refers to the Company's in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed, unless otherwise noted. The Company's in-place portfolio as of October 20, 2021, reflects the acquisition of two properties that occurred subsequent to September 30, 2021.
  2. See page 37 for a reconciliation of the Company's 2021 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.
  3. Our Same Property Portfolio is a subset of our consolidated portfolio and includesproperties that were wholly owned by us for the period from January 1, 2020 through October 20, 2021 and excludesproperties that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2020 and 2021 (unless otherwise noted). As of September 30, 2021, our Same Property Portfolio consists of 194 properties aggregating 24,652,152 rentable square feet. The Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No definitional changes have been made.
  4. Our 2021 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $17.1 million.

  5. * A number of factors could impact the Company's ability to deliver results in line with its guidance, including, but not limited to, interest rates, the economy, the supply and demand of industrial real estate, the availability and terms of financing to potential acquirers of real estate, the impact of COVID-19 and actions taken to contain its spread on the Company, the Company's tenants and the economy, and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.

Third Quarter 2021

Page 7

Supplemental Financial Reporting Package

Guidance (Continued).

As of September 30, 2021

2021 Guidance Rollforward(1)

Range

Earnings Components

($ per share)

Notes

Low

High

2021 Core FFO Per Diluted Share Guidance (Previous)

$1.48

$1.51

Same Property Portfolio NOI Growth

0.04

0.03

2021 SP NOI growth 8.25% - 8.75% increased from 5.75% -6.75% prior

guidance

3Q 2021 Acquisitions

0.10

0.10

$914M 3Q acquisitions (including subsequent to quarter-end)

3Q 2021 Dispositions

-

-

$19.0M 3Q dispositions

Net G&A Expense

-

(0.01)

2021 Net G&A Expense $46M - $47M increased from $45M - $46M prior

guidance

Net Interest Expense

(0.02)

(0.02)

Q3 $400M bond offering; proceeds used to redeem Series A Preferred

Stock, repay $225M term loan and fund acquisitions

2021 Core FFO Per Diluted Share Guidance (Current)

$1.60

$1.61

Core FFO Annual Growth Per Diluted Share

21%

22%

  1. 2021 Guidance and Guidance Rollforward represent the in-place portfolio as of October 20, 2021, and does not include any assumptions for prospective acquisitions, dispositions or balance sheet activities that have not closed unless otherwise noted.

Third Quarter 2021

Page 8

Supplemental Financial Reporting Package

Consolidated Balance Sheets.

(unaudited and in thousands)

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ASSETS

Land

$

3,714,038

$

2,942,639

$

2,769,614

$

2,636,816

$

2,163,518

Buildings and improvements

2,466,435

2,339,640

2,244,948

2,201,187

1,791,668

Tenant improvements

124,156

93,221

86,245

84,462

80,541

Furniture, fixtures, and equipment

132

132

132

132

132

Construction in progress

50,823

33,250

35,083

25,358

41,941

Total real estate held for investment

6,355,584

5,408,882

5,136,022

4,947,955

4,077,800

Accumulated depreciation

(452,019)

(427,387)

(401,122)

(375,423)

(354,203)

Investments in real estate, net

5,903,565

4,981,495

4,734,900

4,572,532

3,723,597

Cash and cash equivalents

60,154

64,219

123,933

176,293

243,619

Restricted cash

50

26

47

1,230

42,387

Rents and other receivables, net

9,863

8,228

7,737

10,208

5,838

Deferred rent receivable, net

55,726

49,933

45,093

40,893

40,473

Deferred leasing costs, net

33,531

31,183

26,039

23,148

21,842

Deferred loan costs, net

2,192

2,545

2,060

2,240

2,419

Acquired lease intangible assets, net(1)

125,697

89,560

87,587

92,172

67,304

Acquired indefinite-lived intangible

5,156

5,156

5,156

5,156

5,156

Other assets

18,213

18,841

27,272

14,390

13,982

Acquisition related deposits

9,610

14,540

10,075

4,067

3,625

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

-

-

-

8,845

-

Total Assets

$

6,223,757

$

5,265,726

$

5,069,899

$

4,951,174

$

4,170,242

LIABILITIES & EQUITY

Liabilities

Notes payable

$

1,386,649

$

1,219,021

$

1,219,425

$

1,216,160

$

906,608

Interest rate swap liability

10,205

12,694

14,081

17,580

20,869

Accounts payable, accrued expenses and other liabilities

77,968

49,699

41,871

45,384

45,212

Dividends and distributions payable

37,970

34,681

33,813

29,747

27,532

Acquired lease intangible liabilities, net(3)

111,444

65,646

66,883

67,256

61,148

Tenant security deposits

55,487

38,489

34,367

31,602

27,683

Prepaid rents

16,358

12,724

11,241

12,660

10,970

Liabilities associated with real estate held for sale(2)

-

-

-

193

-

Total Liabilities

1,696,081

1,432,954

1,421,681

1,420,582

1,100,022

Equity

Preferred stock

155,676

242,327

242,327

242,327

242,327

Common stock

1,514

1,377

1,338

1,313

1,236

Additional paid in capital

4,283,600

3,499,623

3,300,333

3,182,599

2,821,127

Cumulative distributions in excess of earnings

(187,510)

(182,851)

(170,487)

(163,389)

(148,492)

Accumulated other comprehensive loss

(13,234)

(12,319)

(13,996)

(17,709)

(20,231)

Total stockholders' equity

4,240,046

3,548,157

3,359,515

3,245,141

2,895,967

Noncontrolling interests

287,630

284,615

288,703

285,451

174,253

Total Equity

4,527,676

3,832,772

3,648,218

3,530,592

3,070,220

Total Liabilities and Equity

$

6,223,757

$

5,265,726

$

5,069,899

$

4,951,174

$

4,170,242

  1. Includes net above-market tenant lease intangibles of $11,086 (September 30, 2021), $8,723 (June 30, 2021), $7,950 (March 31, 2021), $8,308 (December 31, 2020) and $5,900 (September 30, 2020).
  2. At December 31, 2020, our property located at 14723-14825 Oxnard Street was classified as held for sale.
  3. Represents net below-market tenant lease intangibles as of the balance sheet date.

Third Quarter 2021

Page 9

Supplemental Financial Reporting Package

Consolidated Statements of Operations.

Quarterly Results

(unaudited and in thousands, except share and per share data)

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Revenues

Rental income(1)

$

115,260

$

104,236

$

99,644

$

88,495

$

83,622

Management, leasing, and development services

136

109

105

95

118

Interest income

7

15

14

59

116

Total Revenues

115,403

104,360

99,763

88,649

83,856

Operating Expenses

Property expenses

27,501

24,555

23,575

22,034

20,684

General and administrative

11,806

10,695

11,480

9,042

9,464

Depreciation and amortization

38,676

36,228

35,144

30,554

28,811

Total Operating Expenses

77,983

71,478

70,199

61,630

58,959

Other Expenses

Acquisition expenses

4

2

29

35

70

Interest expense

10,427

9,593

9,752

8,673

7,299

Total Expenses

88,414

81,073

79,980

70,338

66,328

Loss on extinguishment of debt

(505)

-

-

(104)

-

Gain (loss) on sale of real estate

13,702

2,750

10,860

(52)

13,669

Net Income

40,186

26,037

30,643

18,155

31,197

Less: net income attributable to noncontrolling interests

(2,173)

(1,710)

(1,969)

(1,160)

(1,531)

Net income attributable to Rexford Industrial Realty, Inc.

38,013

24,327

28,674

16,995

29,666

Less: preferred stock dividends

(2,976)

(3,637)

(3,636)

(3,636)

(3,636)

Less: original issuance costs of redeemed preferred stock(2)

(3,349)

-

-

-

-

Less: earnings allocated to participating securities

(143)

(139)

(141)

(120)

(129)

Net income attributable to common stockholders

$

31,545

$

20,551

$

24,897

$

13,239

$

25,901

Earnings per Common Share

Net income attributable to common stockholders per share - basic

$

0.23

$

0.15

$

0.19

$

0.11

$

0.21

Net income attributable to common stockholders per share - diluted

$

0.23

$

0.15

$

0.19

$

0.10

$

0.21

Weighted average shares outstanding - basic

138,762,384

134,312,672

131,612,881

125,995,123

123,548,978

Weighted average shares outstanding - diluted

139,630,475

134,819,742

131,758,744

126,401,077

123,843,977

  1. See footnote (1) on page 11 for details related to our presentation of "Rental income" in the consolidated statements of operations for all periods presented.
  2. In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.

Third Quarter 2021

Page 10

Supplemental Financial Reporting Package

Consolidated Statements of Operations.

Quarterly Results (continued)

(unaudited and in thousands, except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenues

Rental income(1)

$

115,260

$

83,622

$

319,140

$

240,882

Management, leasing, and development services

136

118

350

325

Interest income

7

116

36

279

Total Revenues

115,403

83,856

319,526

241,486

Operating Expenses

Property expenses

27,501

20,684

75,631

57,682

General and administrative

11,806

9,464

33,981

27,753

Depreciation and amortization

38,676

28,811

110,048

84,715

Total Operating Expenses

77,983

58,959

219,660

170,150

Other Expenses

Acquisition expenses

4

70

35

89

Interest expense

10,427

7,299

29,772

22,176

Total Expenses

88,414

66,328

249,467

192,415

Loss on extinguishment of debt

(505)

-

(505)

-

Gain on sale of real estate

13,702

13,669

27,312

13,669

Net Income

40,186

31,197

96,866

62,740

Less: net income attributable to noncontrolling interests

(2,173)

(1,531)

(5,852)

(3,332)

Net income attributable to Rexford Industrial Realty, Inc.

38,013

29,666

91,014

59,408

Less: preferred stock dividends

(2,976)

(3,636)

(10,249)

(10,909)

Less: original issuance costs of redeemed preferred stock(2)

(3,349)

-

(3,349)

-

Less: earnings allocated to participating securities

(143)

(129)

(423)

(389)

Net income attributable to common stockholders

$

31,545

$

25,901

$

76,993

$

48,110

Net income attributable to common stockholders per share - basic

$

0.23

$

0.21

$

0.57

$

0.40

Net income attributable to common stockholders per share - diluted

$

0.23

$

0.21

$

0.57

$

0.40

Weighted-average shares of common stock outstanding - basic

138,762,384

123,548,978

134,922,168

119,153,997

Weighted-average shares of common stock outstanding - diluted

139,630,475

123,843,977

135,429,176

119,424,927

  1. On January 1, 2019, we adopted ASC 842 and, among other practical expedients, elected the "non-separation practical expedient" in ASC 842, which allows us to avoid separating lease and non-lease rental income. As a result of this election, all rental income earned pursuant to tenant leases, including tenant reimbursements, is reflected as one line, "Rental income," in the consolidated statements of operations. Prior to the adoption of ASC 842, we presented rental revenues, tenant reimbursements and other income related to leases separately in our consolidated statements of operations. Under the section "Rental Income" on page 36 in the definitions section of this report, we include a presentation of rental revenues, tenant reimbursements and other income for all periods because we believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate our performance.
  2. In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.

Third Quarter 2021

Page 11

Supplemental Financial Reporting Package

Non-GAAP FFO and Core FFO Reconciliations. (1)

(unaudited and in thousands, except share and per share data)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Net Income

$

40,186

$

26,037

$

30,643

$

18,155

$

31,197

Add:

Depreciation and amortization

38,676

36,228

35,144

30,554

28,811

Deduct:

Gain (loss) on sale of real estate

13,702

2,750

10,860

(52)

13,669

NAREIT Defined Funds From Operations (FFO)

65,160

59,515

54,927

48,761

46,339

Less: preferred stock dividends

(2,976)

(3,637)

(3,636)

(3,636)

(3,636)

Less: original issuance costs of redeemed preferred stock(2)

(3,349)

-

-

-

-

Less: FFO attributable to noncontrolling interests(3)

(3,277)

(3,256)

(3,134)

(2,182)

(2,017)

Less: FFO attributable to participating securities(4)

(223)

(224)

(209)

(188)

(197)

Company share of FFO

$

55,335

$

52,398

$

47,948

$

42,755

$

40,489

Company share of FFO per common share‑basic

$

0.40

$

0.39

$

0.36

$

0.34

$

0.33

Company share of FFO per common share‑diluted

$

0.40

$

0.39

$

0.36

$

0.34

$

0.33

FFO

$

65,160

$

59,515

$

54,927

$

48,761

$

46,339

Add:

Acquisition expenses

4

2

29

35

70

Loss on extinguishment of debt

505

-

-

104

-

Amortization of loss on termination of interest rate swaps

615

410

410

218

-

Core FFO

66,284

59,927

55,366

49,118

46,409

Less: preferred stock dividends

(2,976)

(3,637)

(3,636)

(3,636)

(3,636)

Less: Core FFO attributable to noncontrolling interests(3)

(3,475)

(3,275)

(3,155)

(2,193)

(2,019)

Less: Core FFO attributable to participating securities(4)

(241)

(226)

(211)

(190)

(197)

Company share of Core FFO

$

59,592

$

52,789

$

48,364

$

43,099

$

40,557

Company share of Core FFO per common share‑basic

$

0.43

$

0.39

$

0.37

$

0.34

$

0.33

Company share of Core FFO per common share‑diluted

$

0.43

$

0.39

$

0.37

$

0.34

$

0.33

Weighted-average shares outstanding-basic

138,762,384

134,312,672

131,612,881

125,995,123

123,548,978

Weighted-average shares outstanding-diluted(5)

139,630,475

134,819,742

131,758,744

126,401,077

123,843,977

  1. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
  2. In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.
  3. Noncontrolling interests relate to interests in the Company's operating partnership, represented by common units and preferred units (Series 1 & Series 2 CPOP units) of partnership interests in the operating partnership that are owned by unit holders other than the Company.
  4. Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.
  5. Weighted-averageshares outstanding-diluted includes adjustments for unvested performance units and shares issuable under forward equity sales agreements if the effect is dilutive for the reported period.

Third Quarter 2021

Page 12

Supplemental Financial Reporting Package

Non-GAAP FFO and Core FFO Reconciliations. (1)

(unaudited and in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Net Income

$

40,186

$

31,197

$

96,866

$

62,740

Add:

Depreciation and amortization

38,676

28,811

110,048

84,715

Deduct:

Gain on sale of real estate

13,702

13,669

27,312

13,669

Funds From Operations (FFO)

65,160

46,339

179,602

133,786

Less: preferred stock dividends

(2,976)

(3,636)

(10,249)

(10,909)

Less: original issuance costs of redeemed preferred stock(2)

(3,349)

-

(3,349)

-

Less: FFO attributable to noncontrolling interests

(3,277)

(2,017)

(9,667)

(5,472)

Less: FFO attributable to participating securities

(223)

(197)

(656)

(584)

Company share of FFO

$

55,335

$

40,489

$

155,681

$

116,821

Company share of FFO per common share‑basic

$

0.40

$

0.33

$

1.15

$

0.98

Company share of FFO per common share‑diluted

$

0.40

$

0.33

$

1.15

$

0.98

FFO

$

65,160

$

46,339

$

179,602

$

133,786

Add:

Acquisition expenses

4

70

35

89

Loss on extinguishment of debt

505

-

505

-

Amortization of loss on termination of interest rate swaps

615

-

1,435

-

Core FFO

66,284

46,409

181,577

133,875

Less: preferred stock dividends

(2,976)

(3,636)

(10,249)

(10,909)

Less: Core FFO attributable to noncontrolling interests

(3,475)

(2,019)

(9,905)

(5,474)

Less: Core FFO attributable to participating securities

(241)

(197)

(678)

(584)

Company share of Core FFO

$

59,592

$

40,557

$

160,745

$

116,908

Company share of Core FFO per common share‑basic

$

0.43

$

0.33

$

1.19

$

0.98

Company share of Core FFO per common share‑diluted

$

0.43

$

0.33

$

1.19

$

0.98

Weighted-average shares outstanding-basic

138,762,384

123,548,978

134,922,168

119,153,997

Weighted-average shares outstanding-diluted

139,630,475

123,843,977

135,429,176

119,424,927

  1. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
  2. In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3,349, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.

Third Quarter 2021

Page 13

Supplemental Financial Reporting Package

Non-GAAP AFFO Reconciliation. (1)

(unaudited and in thousands, except share and per share data)

Three Months Ended

September 30,

June 30, 2021

March 31, 2021

December 31,

September 30,

2021

2020

2020

Funds From Operations(2)

$

65,160

$

59,515

$

54,927

$

48,761

$

46,339

Add:

Amortization of deferred financing costs

508

447

447

408

373

Non-cash stock compensation

4,506

4,463

4,261

2,491

3,101

Loss on extinguishment of debt

505

-

-

104

-

Amortization of loss on termination of interest rate swaps

655

410

410

218

-

Deduct:

Preferred stock dividends

2,976

3,637

3,636

3,636

3,636

Straight line rental revenue adjustment(3)

5,865

4,840

4,199

434

3,088

Amortization of net below-market lease intangibles

3,191

3,386

2,712

2,711

2,751

Capitalized payments(4)

3,339

2,593

2,322

2,149

2,442

Note payable (discount) premium amortization, net

(23)

28

29

47

66

Recurring capital expenditures(5)

2,509

2,053

2,541

2,671

1,380

2nd generation tenant improvements and leasing

2,523

4,885

3,528

1,741

2,243

commissions(6)

Adjusted Funds From Operations (AFFO)

$

50,954

$

43,413

$

41,078

$

38,593

$

34,207

  1. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
  2. A quarterly reconciliation of net income to Funds From Operations is set forth on page 12 of this report.
  3. The straight line rental revenue adjustment includes concessions of $3,239, $3,127, $2,563 (including deferral of $62 of base rent provided by COVID-19 rent relief agreements), $2,358 (including deferral of $250 of base rent provided by COVID-19 rent relief agreements), $2,273 (including deferral of $686 of base rent provided by COVID-19 rent relief agreements), for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.
  4. Includes capitalized interest, taxes, insurance and construction related compensation costs.
  5. Excludes nonrecurring capital expenditures of $20,271, $21,968, $16,584, $20,569 and $18,835 for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.
  6. Excludes 1st generation tenant improvements and leasing commissions of $2,531, $3,272, $1,369, $1,327 and $1,744 for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

Third Quarter 2021

Page 14

Supplemental Financial Reporting Package

Statement of Operations Reconciliations - NOI, Cash NOI, EBITDAre and Adjusted EBITDA. (1)

(unaudited and in thousands)

NOI and Cash NOI

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Rental income(2)(3)

$

115,260

$

104,236

$

99,644

$

88,495

$

83,622

Property expenses

27,501

24,555

23,575

22,034

20,684

Net Operating Income (NOI)

$

87,759

$

79,681

$

76,069

$

66,461

$

62,938

Amortization of above/below market lease intangibles

(3,191)

(3,386)

(2,712)

(2,711)

(2,751)

Straight line rental revenue adjustment

(5,865)

(4,840)

(4,199)

(434)

(3,088)

Cash NOI

$

78,703

$

71,455

$

69,158

$

63,316

$

57,099

EBITDAre and Adjusted EBITDA

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Net income

$

40,186

$

26,037

$

30,643

$

18,155

$

31,197

Interest expense

10,427

9,593

9,752

8,673

7,299

Depreciation and amortization

38,676

36,228

35,144

30,554

28,811

(Gain) loss on sale of real estate

(13,702)

(2,750)

(10,860)

52

(13,669)

EBITDAre

$

75,587

$

69,108

$

64,679

$

57,434

$

53,638

Stock-based compensation amortization

4,506

4,463

4,261

2,491

3,101

Loss on extinguishment of debt

505

-

-

104

-

Acquisition expenses

4

2

29

35

70

Pro forma effect of acquisitions(4)

8,572

2,086

662

5,260

5

Pro forma effect of dispositions(5)

(186)

16

(110)

4

(430)

Adjusted EBITDA

$

88,988

$

75,675

$

69,521

$

65,328

$

56,384

  1. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
  2. See footnote (1) on page 11 for details related to our presentation of "Rental income" in the consolidated statements of operations for all periods presented.
  3. Reflects increase (reduction) to rental income due to changes in the Company's assessment of lease payment collectability as follows (in thousands): $142, $(121), $(496), $(2,114) and $(1,479) for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.
  4. Represents the estimated impact on Q3'21 EBITDAre of Q3'21 acquisitions as if they had been acquired on July 1, 2021, the impact on Q2'21 EBITDAre of Q2'21 acquisitions as if they had been acquired on April 1, 2021, the impact on Q1'21 EBITDAre of Q1'21 acquisitions as if they had been acquired on January 1, 2021, the impact on Q4'20 EBITDAre of Q4'20 acquisitions as if they had been acquired on October 1, 2020, and the impact on Q3'20 EBITDAre of Q3'20 acquisitions as if they had been acquired on July 1, 2020. We have made a number of assumptions in such estimates and there can be no assurance that we would have generated the projected levels of EBITDAre had we owned the acquired entities as of the beginning of each period.
  5. Represents the impact on Q3'21 EBITDAre of Q3'21 dispositions as if they had been sold as of July 1, 2021, Q2'21 EBITDAre of Q2'21 dispositions as if they had been sold as of April 1, 2021, Q1'21 EBITDAre of Q1'21 dispositions as if they had been sold as of January 1, 2021, the impact on Q4'20 EBITDAre of Q4'20 dispositions as if they had been sold as of October 1, 2020, and the impact on Q3'20 EBITDAre of Q3'20 dispositions as if they had been sold as of July 1, 2020.

Third Quarter 2021

Page 15

Supplemental Financial Reporting Package

Same Property Portfolio Performance. (1)

(unaudited and dollars in thousands)

Same Property Portfolio:

Number of properties

194

Square Feet

24,652,152

Same Property Portfolio NOI and Cash NOI:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

$

Change

% Change

2021

2020

$

Change

% Change

Rental income(2)(3)(4)

$

80,278

$

74,543

$

5,735

7.7%

$

236,442

$

219,630

$

16,812

7.7%

Property expenses

18,104

17,866

238

1.3%

53,278

51,412

1,866

3.6%

Same Property Portfolio NOI

$

62,174

$

56,677

$

5,497

9.7%

(4)

$

183,164

$

168,218

$

14,946

8.9%

(4)

Straight-line rental revenue

(2,096)

(2,842)

746

(26.2)%

(5,713)

(10,588)

4,875

(46.0)%

Amort. of above/below market lease intangibles

(1,280)

(1,956)

676

(34.6)%

(4,122)

(6,030)

1,908

(31.6)%

Same Property Portfolio Cash NOI

$

58,798

$

51,879

$

6,919

13.3%

(4)(5)

$

173,329

$

151,600

$

21,729

14.3%

(4)(5)

Same Property Portfolio Occupancy:

September 30,

2021

2020

Change (basis points)

Quarterly Weighted Average Occupancy:(6)

Los Angeles County

98.7%

98.4%

30 bps

Orange County

98.9%

97.5%

140 bps

San Bernardino County

98.9%

98.2%

70 bps

Ventura County

97.1%

95.8%

130 bps

San Diego County

98.3%

96.2%

210 bps

Same Property Portfolio Weighted Average

98.6%

97.8%

80 bps

Occupancy

Ending Occupancy:

98.8%

98.3%

50 bps

  1. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.
  2. See "Same Property Portfolio Rental Income" on page 36 of the definitions section of this report for a breakdown of rental income into rental revenues, tenant reimbursement and other income for the three months ended September 30, 2021 and 2020. Same Property Portfolio was previously referred to as the "Stabilized Same Property Portfolio." No changes to the definition have been made.
  3. Reflects (reduction) increase to rental income due to changes in the Company's assessment of lease payment collectability as follows: $(10) thousand and $(1,314) thousand for the three months ended September 30, 2021 and 2020, respectively, and $7 thousand and $(2,667) thousand for the nine months ended September 30, 2021 and 2020, respectively,
  4. Rental income includes lease termination fees of $238 thousand and $297 thousand for the three months ended September 30, 2021 and 2020, respectively, and $351 thousand and $435 thousand for the nine months ended September 30, 2021 and 2020, respectively. Excluding these lease termination fees, Same Property Portfolio NOI increased by approximately 9.9% and 9.0% and Same Property Portfolio Cash NOI increased by approximately 13.5% and 14.4% during the three and nine months ended September 30, 2021, compared to the three and nine months ended September 30, 2020, respectively.
  5. Adjusting for the impact of short-termCOVID-19 related rent deferral agreements, Same Property Portfolio Cash NOI increased by 12.0% and 10.3% for the three and nine months ended September 30, 2021, compared to the three and nine months ended September 30, 2020, respectively.
  6. Calculated by averaging the occupancy rate at the end of each month in 3Q-2021 and June 30, 2021 (for 3Q-2021) and the end of each month in 3Q-2020 and June 2020 (for 3Q-2020).

Third Quarter 2021

Page 16

Supplemental Financial Reporting Package

Capitalization Summary.

(unaudited and in thousands, except share and per share data)

Capitalization as of September 30, 2021

Net Debt: 12.7%

Preferred Stock/Units: 3.0%

Common Stock: 80.9%

Operating Partnership Units: 3.4%

Description

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Common shares outstanding(1)

151,194,469

137,492,045

133,657,612

131,193,139

123,551,852

Operating partnership units outstanding(2)

6,415,276

6,428,125

6,641,742

6,606,693

3,903,509

Total shares and units outstanding at period end

157,609,745

143,920,170

140,299,354

137,799,832

127,455,361

Share price at end of quarter

$

56.75

$

56.95

$

50.40

$

49.11

$

45.76

Common Stock and Operating Partnership Units - Capitalization

$

8,944,353

$

8,196,254

$

7,071,087

$

6,767,350

$

5,832,357

Series A, B and C Cumulative Redeemable Preferred Stock(3)

$

161,250

$

251,250

$

251,250

$

251,250

$

251,250

4.43937% Series 1 Cumulative Redeemable Convertible Preferred Units(4)

27,031

27,031

27,031

27,031

27,031

4.00% Series 2 Cumulative Redeemable Convertible Preferred Units(4)

40,787

40,787

40,787

40,787

40,787

Preferred Equity

$

229,068

$

319,068

$

319,068

$

319,068

$

319,068

Total Equity Market Capitalization

$

9,173,421

$

8,515,322

$

7,390,155

$

7,086,418

$

6,151,425

Total Debt

$

1,400,552

$

1,226,083

$

1,226,415

$

1,223,494

$

908,046

Less: Cash and cash equivalents

(60,154)

(64,219)

(123,933)

(176,293)

(243,619)

Net Debt

$

1,340,398

$

1,161,864

$

1,102,482

$

1,047,201

$

664,427

Total Combined Market Capitalization (Net Debt plus Equity)

$

10,513,819

$

9,677,186

$

8,492,637

$

8,133,619

$

6,815,852

Net debt to total combined market capitalization

12.7%

12.0%

13.0%

12.9%

9.7%

Net debt to Adjusted EBITDA (quarterly results annualized)(5)

3.8x

3.8x

4.0x

4.0x

2.9x

Net debt & preferred equity to Adjusted EBITDA (quarterly results annualized)(5)

4.4x

4.9x

5.1x

5.2x

4.4x

  1. Excludes the following number of shares of unvested restricted stock: 250,439 (Sep 30, 2021), 235,953 (Jun 30, 2021), 239,748 (Mar 31, 2021), 232,899 (Dec 31, 2020) and 236,739 (Sep 30, 2020).
  2. Represents outstanding common units of the Company's operating partnership ("OP"), Rexford Industrial Realty, LP, that are owned by unitholders other than Rexford Industrial Realty, Inc. Represents the noncontrolling interest in our OP. As of Sep 30, 2021, includes 600,705 vested LTIP Units & 600,843 vested performance units & excludes 255,913 unvested LTIP Units & 905,732 unvested perf. units.
  3. Values based on liquidation preference of $25 per share and the following number of outstanding shares of preferred stock: 5.875% Series A (3,600,000); 5.875% Series B (3,000,000); 5.625% Series C (3,450,000). units. On August 16, 2021, we redeemed all 3,600,000 shares of our Series A Preferred Stock at a redemption price equal to the stated liquidation preference of $25.00 per share, representing $90,000 in aggregate, plus all accrued and unpaid dividends.
  4. Value based on 593,960 outstanding Series 1 preferred units at a liquidation preference of $45.50952 per unit and 906,374 outstanding Series 2 preferred units at a liquidation preference of $45.00 per unit.
  5. For a definition and discussion of non-GAAP financial measures, see the definitions section beginning on page 33 of this report.

Third Quarter 2021

Page 17

Supplemental Financial Reporting Package

Debt Summary.

(unaudited and dollars in thousands)

Debt Detail:

As of September 30, 2021

Stated Interest

Effective Interest

Principal

Expiration Date of

Debt Description

Maturity Date

Rate

Rate(1)

Balance(2)

Effective Swaps

Unsecured Debt:

$700M Revolving Credit Facility(3)

2/13/2024(4)

LIBOR +0.85%(5)

0.930%

$

-

$150M Term Loan Facility

5/22/2025

LIBOR +0.95%(5)

3.713%

150,000

11/22/2024

$100M Senior Notes

8/6/2025

4.290%

4.290%

100,000

$125M Senior Notes

7/13/2027

3.930%

3.930%

125,000

$25M Series 2019A Senior Notes

7/16/2029

3.880%

3.880%

25,000

$400M Senior Notes due 2030

12/1/2030

2.125%

2.125%

400,000

$400M Senior Notes due 2031 - Green Bond

9/1/2031

2.150%

2.150%

400,000

$75M Series 2019B Senior Notes

7/16/2034

4.030%

4.030%

75,000

Secured Debt:

2601-2641 Manhattan Beach Boulevard

4/5/2023

4.080%

4.080%

3,980

$60M Term Loan

8/1/2023(6)

LIBOR + 1.70%

1.780%

58,304

960-970 Knox Street

11/1/2023

5.000%

5.000%

2,422

7612-7642 Woodwind Drive

1/5/2024

5.240%

5.240%

3,829

11600 Los Nietos Road

5/1/2024

4.190%

4.190%

2,667

5160 Richton Street

11/15/2024

3.790%

3.790%

4,301

22895 Eastpark Drive

11/15/2024

4.330%

4.330%

2,699

701-751 Kingshill Place

1/5/2026

3.900%

3.900%

7,100

13943-13955 Balboa Boulevard

7/1/2027

3.930%

3.930%

15,406

2205 126th Street

12/1/2027

3.910%

3.910%

5,200

2410-2420 Santa Fe Avenue

1/1/2028

3.700%

3.700%

10,300

11832-11954 La Cienega Boulevard

7/1/2028

4.260%

4.260%

4,019

1100-1170 Gilbert Street (Gilbert/La Palma)

3/1/2031

5.125%

5.125%

2,163

7817 Woodley Avenue

8/1/2039

4.140%

4.140%

3,162

2.832%

$

1,400,552

Debt Composition:

Category

Weighted Average Term Remaining (yrs)(7)

Stated Interest Rate

Effective Interest Rate

Balance

% of Total

Fixed

8.1

2.88%

2.88%

$

1,342,248

96%

Variable

1.8

LIBOR + 1.70%

1.78%

$

58,304

4%

Secured

3.8

3.02%

$

125,552

9%

Unsecured

8.2

2.81%

$

1,275,000

91%

*See footnotes on the following page*

Third Quarter 2021

Page 18

Supplemental Financial Reporting Package

Debt Summary (Continued).

(unaudited and dollars in thousands)

Debt Maturity Schedule

$500,000

Unsecured

Secured

$480,325

$450,000

$400,000

$400,000

$350,000

$300,000

$250,000

$250,000

$200,000

$145,606

$150,000

$100,000

$64,706

$25,000

$50,000

$0

$0

$13,496

$7,100

$14,319

$0

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Thereafter

Debt Maturity Schedule:

Year

Secured(8)

Unsecured

Total

% Total

Effective Interest Rate(1)

2021

$

-

$

-

$

-

-%

-%

2022

-

-

-

-%

-%

2023

64,706

-

64,706

5%

2.042%

2024

13,496

-

13,496

1%

4.388%

2025

-

250,000

250,000

18%

3.944%

2026

7,100

-

7,100

1%

3.900%

2027

20,606

125,000

145,606

10%

3.929%

2028

14,319

-

14,319

1%

3.857%

2029

-

25,000

25,000

2%

3.880%

2030

-

400,000

400,000

28%

2.125%

Thereafter

5,325

475,000

480,325

34%

2.470%

Total

$

125,552

$

1,275,000

$

1,400,552

100%

2.832%

  1. Includes the effect of interest rate swaps effective as of September 30, 2021, and excludes the effect of premiums/discounts, deferred loan costs and the credit facility fee.
  2. Excludes unamortized debt issuance costs, premiums and discounts aggregating $13.9 million as of September 30, 2021.
  3. The credit facility is subject to a facility fee which is calculated as a percentage of the total commitment amount, regardless of usage. The facility fee ranges from 0.125% to 0.300% depending on our investment grade rating. As September 30, 2021, the facility fee rate is 0.200%.
  4. Two additional six-month extensions are available, provided that certain conditions are satisfied.
  5. The applicable LIBOR margin ranges from 0.725% to 1.400% for the revolving credit facility and 0.80% to 1.60% for the $150M term loan facility depending on our credit ratings, which is subject to change. As a result, the effective interest rate for these loans can fluctuate from period to period.
  6. One two-year extension is available, provided that certain conditions are satisfied.
  7. The weighted average remaining term to maturity of our consolidated debt is 7.8 years.
  8. Excludes the effect of scheduled monthly principal payments on amortizing loans.

Third Quarter 2021

Page 19

Supplemental Financial Reporting Package

Operations.

Quarterly Results

Leasing Volume, Square Feet (in millions)

2.5

2.2

2.0

1.8

2.0

1.8

1.6

1.5

1.0

0.5

0.0

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Consolidated Portfolio Ending Occupancy

Occupancy

Occupancy Excluding Repositioning

100.0%

98.0%

97.9%

98.3%

98.2%

98.4%

97.2%

96.7%

95.8%

96.1%

96.0%

95.2%

95.4%

94.0%

92.0%

90.0%

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Leasing Activity - Rent Change

Same Property Portfolio Ending Occupancy

GAAP

CASH

100.0%

98.8%

60.0%

54.3%

98.3%

98.2%

98.6%

98.4%

50.0%

47.1%

98.0%

40.0%

33.9%

38.5%

96.0%

32.7%

29.9%

30.0%

26.8%

21.3%

94.0%

18.1%

20.0%

17.4%

10.0%

92.0%

0.0%

90.0%

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Third Quarter 2021

Page 20

Supplemental Financial Reporting Package

Portfolio Overview.

At September 30, 2021

(unaudited results)

Consolidated Portfolio:

Rentable Square Feet

Ending Occupancy %

In-Place ABR(2)

Same

Non-Same

Same

Non-Same

Total Portfolio

Market

#

Property

Property

Total

Property

Property

Total

Excluding (1)

Total

Per Square

Properties

Portfolio

Portfolio

Portfolio

Portfolio

Portfolio

Portfolio

Repositioning

(in 000's)

Foot

Central LA

17

1,892,712

915,506

2,808,218

98.9 %

93.9 %

97.3 %

97.3 %

$

27,747

$10.16

Greater San Fernando Valley

49

3,759,285

1,629,351

5,388,636

99.1 %

89.8 %

96.3 %

98.5 %

60,750

$11.71

Mid-Counties

23

1,001,119

1,573,090

2,574,209

99.5 %

83.4 %

89.6 %

99.8 %

27,611

$11.97

San Gabriel Valley

23

3,314,010

235,127

3,549,137

100.0 %

70.0 %

98.0 %

100.0 %

31,792

$9.14

South Bay

49

3,070,080

2,139,596

5,209,676

96.7 %

88.9 %

93.5 %

96.5 %

81,727

$16.78

Los Angeles County

161

13,037,206

6,492,670

19,529,876

98.8 %

87.8 %

95.1 %

98.2 %

229,627

$12.36

North Orange County

16

1,151,026

370,254

1,521,280

99.0 %

100.0 %

99.3 %

99.3 %

17,351

$11.49

OC Airport

8

463,517

492,434

955,951

98.6 %

100.0 %

99.3 %

99.3 %

12,884

$13.57

South Orange County

4

329,458

27,960

357,418

100.0 %

100.0 %

100.0 %

100.0 %

3,740

$10.47

West Orange County

8

939,996

183,177

1,123,173

100.0 %

34.1 %

89.2 %

100.0 %

9,475

$9.45

Orange County

36

2,883,997

1,073,825

3,957,822

99.4 %

88.8 %

96.5 %

99.5 %

43,450

$11.38

Inland Empire East

1

33,258

-

33,258

100.0 %

- %

100.0 %

100.0 %

229

$6.89

Inland Empire West

33

3,659,307

2,233,180

5,892,487

99.4 %

97.2 %

98.6 %

98.6 %

53,922

$9.28

San Bernardino County

34

3,692,565

2,233,180

5,925,745

99.4 %

97.2 %

98.6 %

98.6 %

54,151

$9.27

Ventura

16

2,403,582

90,773

2,494,355

96.7 %

100.0 %

96.8 %

96.8 %

25,208

$10.44

Ventura County

16

2,403,582

90,773

2,494,355

96.7 %

100.0 %

96.8 %

96.8 %

25,208

$10.44

Central San Diego

18

1,190,294

390,013

1,580,307

98.6 %

77.8 %

93.4 %

98.9 %

22,023

$14.91

North County San Diego

13

1,444,508

-

1,444,508

99.7 %

- %

99.7 %

99.7 %

17,396

$12.08

San Diego County

31

2,634,802

390,013

3,024,815

99.2 %

77.8 %

96.4 %

99.3 %

39,419

$13.52

CONSOLIDATED TOTAL / WTD AVG

278

24,652,152

10,280,461

34,932,613

98.8 %

89.7 %

96.1 %

98.4 %

$

391,855

$11.67

  1. Excludes space aggregating 822,848 square feet at our properties that were in various stages of repositioning, redevelopment or lease-up as of September 30, 2021. See pages 27-28 for additional details on these properties.
  2. See page 33 for definition and details on how these amounts are calculated.

Third Quarter 2021

Page 21

Supplemental Financial Reporting Package

Occupancy and Leasing Trends.

(unaudited results)

Occupancy by County:

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Ending Occupancy:(1)

Los Angeles County

95.1%

95.0%

95.4%

97.2%

98.2%

Orange County

96.5%

95.1%

96.0%

95.7%

94.4%

San Bernardino County

98.6%

98.4%

98.1%

87.5%

96.8%

Ventura County

96.8%

93.5%

94.9%

94.6%

96.3%

San Diego County

96.4%

94.7%

94.1%

95.9%

96.3%

Total/Weighted Average

96.1%

95.4%

95.8%

95.2%

97.2%

Total Portfolio RSF

34,932,613

32,955,385

32,087,821

31,501,111

27,711,078

Leasing Activity:

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Leasing Activity (SF):(2)

New leases(2)

717,104

1,207,516

909,694

672,134

987,176

Renewal leases(2)

1,104,424

981,781

1,049,547

1,132,687

575,003

Gross leasing

1,821,528

2,189,297

1,959,241

1,804,821

1,562,179

Expiring leases

1,678,180

1,480,571

1,392,181

1,839,669

998,277

Expiring leases - placed into repositioning

206,155

400,503

389,486

13,020

-

Net absorption

(62,807)

308,223

177,574

(47,868)

563,902

Retention rate(3)

72 %

74 %

79 %

79 %

68 %

Weighted Average New / Renewal Leasing Spreads:

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

GAAP Rent Change

54.3%

33.9%

47.1%

29.9%

26.8%

Cash Rent Change

38.5%

21.3%

32.7%

18.1%

17.4%

  1. See page 21 for the ending occupancy by County of our total portfolio excluding repositioning space.
  2. Excludes month-to-month tenants.
  3. Retention rate is calculated as renewal lease square footage plus relocation/expansion square footage, divided by expiring lease square footage. Retention excludes square footage related to the following: (i) expiring leases associated with space that is placed into repositioning after the tenant vacates, (ii) early terminations with prenegotiated replacement leases and (iii) move outs where space is directly leased by subtenants.

Third Quarter 2021

Page 22

Supplemental Financial Reporting Package

Leasing Statistics.

(unaudited results)

Leasing Activity:

# Leases Signed

SF of Leasing

Weighted Average Lease

Term (Years)

Third Quarter 2021:

New

65

717,104

4.7

Renewal

68

1,104,424

4.8

Total/Weighted Average

133

1,821,528

4.7

Change in Annual Rental Rates

and Turnover Costs for Current Quarter Leases:

GAAP Rent

Cash Rent

Rent Change -

Weighted Avg.

Starting Cash

Expiring Cash

Rent Change -

Turnover Costs

Third Quarter 2021:

Current Lease

Prior Lease

Abatement

Rent - Current

Rent - Prior

GAAP

(Months)

Lease

Lease

Cash

per SF(2)

New(1)

$15.19

$10.68

42.2%

0.5

$14.46

$11.26

28.4%

$6.41

Renewal

$13.68

$8.51

60.8%

1.4

$13.20

$9.18

43.7%

$1.18

Weighted Average

$14.13

$9.16

54.3%

1.1

$13.57

$9.80

38.5%

$2.75

Uncommenced Leases by County:

Uncommenced

ABR Under

In-Place +

In-Place +

Uncommenced New

Uncommenced

Market

Renewal Leases:

Percent Leased

Leases

Uncommenced ABR

Uncommenced ABR

Leased SF(3)

Leases: Leased SF(3)

(in thousands)(4)(5)

(in thousands)(4)(5)

per SF(5)

Los Angeles County

327,162

19,687

95.2%

$

4,883

$

234,510

$12.61

Orange County

314,892

4,262

96.6%

2,735

46,185

$12.08

San Bernardino County

46,794

84,199

100.0%

1,451

55,602

$9.38

San Diego County

225,340

-

96.4%

165

39,584

$13.57

Ventura County

26,374

53,415

98.9%

557

25,765

$10.44

Total/Weighted Average

940,562

161,563

96.6%

$

9,791

$

401,646

$11.91

  1. GAAP and cash rent statistics and turnover costs for new leases exclude 16 leases aggregating 243,292 RSF for which there was no comparable lease data. Of these 16 excluded leases, six leases for 182,526 RSF related to current year significant repositioning/redevelopment properties. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year or (iv) lease terms shorter than six months.
  2. Turnover costs include estimated tenant improvement and leasing costs associated with leases executed during the current period. Excludes costs for first generation leases.
  3. Reflects the square footage of renewal and new leases, respectively, that have been signed but have not yet commenced as of September 30, 2021.
  4. Includes $5.3 million of annualized base rent under Uncommenced New Leases and $4.5 million of incremental annualized base rent under Uncommenced Renewal Leases.
  5. See page 33 for further details on how these amounts are calculated.

Third Quarter 2021

Page 23

Supplemental Financial Reporting Package

Leasing Statistics (Continued).

(unaudited results)

Lease Expiration Schedule as of September 30, 2021:

Lease Expirations

18%

% of In-Place + Uncommenced Annualized Base Rent (ABR)

16%

15.3%

16.3%

14%

13.6%

14.2%

14.0%

12%

10%

11.0%

8%

6%

4%

1.6%

4.5%

3.8%

2%

0.6%

2.4%

2.7%

0%

MTM

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Thereafter

Total Rentable Square

In-Place +

In-Place +

Year of Lease Expiration

Uncommenced ABR

Uncommenced

# of Leases Expiring

Feet

(in thousands)

ABR per SF

Available

-

378,453

$

-

$-

Repositioning/Redevelopment(1)

-

822,848

-

$-

MTM Tenants

8

177,519

2,392

$13.47

2021

69

537,920

6,287

$11.69

2022

403

4,783,374

54,687

$11.43

2023

376

4,855,520

57,066

$11.75

2024

322

5,679,138

61,503

$10.83

2025

140

4,137,736

44,212

$10.69

2026

153

5,855,416

65,481

$11.18

2027

25

1,833,723

18,154

$9.90

2028

14

764,983

9,671

$12.64

2029

12

813,318

10,850

$13.34

2030

12

1,320,331

15,213

$11.52

Thereafter

37

2,972,334

56,130

$18.88

Total Portfolio

1,571

34,932,613

$

401,646

$11.91

  1. Represents vacant space at properties that were classified as repositioning or redevelopment as of September 30, 2021. Excludes completed or pre-leased repositioning/redevelopment properties and properties in lease-up. See pages 27-28 for additional details on these properties.

Third Quarter 2021

Page 24

Supplemental Financial Reporting Package

Top Tenants and Lease Segmentation.

(unaudited results)

Top 20 Tenants:

In-Place +

% of In-Place +

In-Place +

Leased

Uncommenced

Tenant

Submarket

Uncommenced

ABR

Uncommenced

Lease Expiration

Rentable SF

ABR

(in thousands)(1)

ABR per SF(1)

Zenith Energy West Coast Terminals LLC

South Bay

-(2)

$11,002

2.7%

$3.15(2)

9/29/2041

Federal Express Corporation

Multiple Submarkets(3)

527,861

$9,308

2.3%

$17.63

11/30/2032 (3)

L3 Technologies, Inc.

South Bay

461,431

$8,227

2.0%

$17.83

9/30/2031

Unified Natural Foods, Inc.

Central LA

695,120

$5,492

1.4%

$7.90

5/8/2038

Michael Kors (USA), Inc.

Mid-Counties

565,619

$5,056

1.3%

$8.94

11/30/2026

Global Mail. Inc.

Mid-Counties

346,381

$3,878

1.0%

$11.20

6/30/2030

Volt Information Sciences, Inc.

North Orange County

191,127

$3,324

0.8%

$17.39

3/31/2031

Behr Process Corporation

OC Airport

225,280

$3,234

0.8%

$14.36

12/31/2032

Cosmetic Laboratories of America, LLC

Greater San Fernando Valley

319,348

$2,842

0.7%

$8.90

6/30/2027

De Fili Solutions Inc.

South Bay

244,177

$2,829

0.7%

$11.58

8/31/2026

Top 10 Tenants

3,576,344

$55,192

13.7%

Top 11 - 20 Tenants

1,994,316

$24,061

6.0%

Total Top 20 Tenants

5,570,660

$79,253

19.7%

  1. See page 33 for further details on how these amounts are calculated.
  2. The tenant is leasing an 80.2 acre industrial outdoor storage site with ABR of $11.0 million or $3.15 per land square foot.
  3. Includes (i) one land lease in North Orange County expiring October 31, 2026, (ii) 30,160 RSF in Ventura expiring September 30, 2027, (iii) one land lease in LA - Mid-Counties expiring June 30, 2029, (iv) 42,270 RSF in LA - South Bay expiring October 31, 2030, (v) 311,995 RSF in North County San Diego expiring February 28, 2031, and (vi) 143,436 RSF in LA - South Bay expiring November 30, 2032.

Lease Segmentation by Size:

Leased %

In-Place +

% of In-Place +

In-Place +

Number of

Leased

Rentable Square

Uncommenced

Uncommenced

Square Feet

Leased %

Excluding

ABR

(1)

Uncommenced

ABR(1)

Leases

Rentable SF

Feet

Repositioning

(in thousands)

ABR

per SF

<4,999

688

1,556,345

1,685,339

92.3%

96.3%

$

35,765

9.2%

$22.98

5,000 - 9,999

239

1,707,624

1,810,931

94.3%

97.0%

24,998

6.4%

$14.64

10,000 - 24,999

321

5,211,261

5,501,550

94.7%

97.4%

66,935

17.1%

$12.84

25,000 - 49,999

159

5,755,849

5,970,215

96.4%

98.7%

68,396

17.5%

$11.88

>50,000

164

19,500,233

19,964,578

97.7%

99.7%

194,549

49.8%

$9.98

Total / Wtd. Average (2)

1,571

33,731,312

34,932,613

96.6%

98.9%

$

390,643

100.0%

$11.58 (2)

  1. See page 33 for further details on how these amounts are calculated.
  2. Total "In-Place + Uncommenced ABR" and "In-Place + Uncommenced ABR per SF" excludes the Zenith Energy West Coast Terminals LLC lease ("Zenith lease") noted in the Top 20 Tenants table above. As noted above, the tenant is leasing an 80.2 acre industrial outdoor storage site with ABR of $11.0 million or $3.15 per land square foot. Including the Zenith lease, In-Place + Uncommenced ABR is $401.6 million.

Third Quarter 2021

Page 25

Supplemental Financial Reporting Package

Capital Expenditure Summary.

(unaudited results, in thousands, except square feet and per square foot data)

Nine months ended September 30, 2021

Year to Date

Q3-2021

Q2-2021

Q1-2021

Total

SF(1)

PSF

Tenant Improvements:

New Leases‑1st Generation

$

610

$

1,023

$

353

$

1,986

1,012,440

$

1.96

New Leases‑2nd Generation

2

27

4

33

48,177

$

0.68

Renewals

109

57

58

224

384,940

$

0.58

Total Tenant Improvements

$

721

$

1,107

$

415

$

2,243

Leasing Commissions & Lease Costs:

New Leases‑1st Generation

$

1,921

$

2,249

$

1,016

$

5,186

1,633,797

$

3.17

New Leases‑2nd Generation

1,604

3,551

2,017

7,172

1,937,046

$

3.70

Renewals

808

1,250

1,449

3,507

2,560,541

$

1.37

Total Leasing Commissions & Lease Costs

$

4,333

$

7,050

$

4,482

$

15,865

Total Recurring Capex

$

2,509

$

2,053

$

2,541

$

7,103

32,534,710

$

0.22

Recurring Capex % of NOI

2.9%

2.6%

3.3%

2.8%

Recurring Capex % of Rental Revenue

2.6%

2.4%

3.1%

2.6%

Nonrecurring Capex:

Repositioning and Redevelopment in Process(2)

$

16,132

$

18,989

$

13,191

$

48,312

Unit Renovation(3)

963

728

474

2,165

Other(4)

3,176

2,251

2,919

8,346

Total Nonrecurring Capex

$

20,271

$

21,968

$

16,584

$

58,823

21,569,721

$

2.73

Other Capitalized Costs(5)

$

3,429

$

2,689

$

2,400

$

8,518

  1. For tenant improvements and leasing commissions, reflects the aggregate square footage of the leases in which we incurred such costs, excluding new/renewal leases in which there were no tenant improvements and/or leasing commissions. For recurring capex, reflects the weighted average square footage of our consolidated portfolio for the period (including properties that were sold during the period). For nonrecurring capex, reflects the aggregate square footage of the properties in which we incurred such capital expenditures.
  2. Includes capital expenditures related to properties that were under repositioning or redevelopment as of September 30, 2021. See pages 27-28 for details of these properties.
  3. Includes non-tenant-specific capital expenditures with costs less than $100,000 per unit.
  4. Includes other nonrecurring capital expenditures including, but not limited to, seismic and fire sprinkler upgrades, replacements of either roof or parking lots, ADA related construction and capital expenditures for deferred maintenance existing at the time such property was acquired.
  5. Includes the following capitalized costs: (i) compensation costs of personnel directly responsible for and who spend their time on redevelopment, renovation and rehabilitation activity and (ii) interest, property taxes and insurance costs incurred during the pre-development and construction periods of repositioning or redevelopment projects.

Third Quarter 2021

Page 26

Supplemental Financial Reporting Package

Properties and Space Under Repositioning*/Redevelopment.(1)

As of September 30, 2021

(unaudited results, in thousands, except square feet)

Repositioning

Est. Constr.

Period(1)

Total

Est.

Est.

Total

Repo/

Est.

Projected

Projected

Cumulative

Actual

Annual

Property

Target

Purch.

Stabilized

Unlevered

Property (Submarket)

Property

Lease-Up

Leased %

Start

Stabilization

Repo

Total

Investment

Cash NOI

Cash

Stabilized

RSF(2)

RSF(2)

9/30/2021

Complet.

Period(1)(3)

Price(1)

Costs(1)

Invest.(1)

to Date(1)

3Q-2021(1)

NOI(1)

Yield(1)

SIGNIFICANT CURRENT REPOSITIONING IN PROCESS:

12821 Knott Street (West OC)(4)

165,171

165,171

0%

1Q-19

1Q-22

3Q-22

$ 20,673

$

14,341

$

35,014

$

30,108

$

(4)

$

2,127

6.1%

12133 Greenstone Ave. (Mid-Counties)

-

-

100%(5)

1Q-21

1Q-22

1Q-22

5,657

7,015

12,672

7,134

(9)

1,006

7.9%

11600 Los Nietos Road (Mid-Counties)

103,982

103,982

0%

2Q-21

1Q-22

3Q-22

17,014

5,243

22,257

17,763

(47)

1,316

5.9%

15650-15700 Avalon Blvd. (South Bay)

98,259

98,259

0%

3Q-21

1Q-22

2Q-22

28,273

6,441

34,714

29,766

15

2,116

6.1%

TOTAL

367,412

367,412

$ 71,617

$

33,040

$

104,657

$

84,771

$

(45)

$

6,565

6.3%

OTHER CURRENT REPOSITIONING IN PROCESS:

Other Repositioning - 11 properties with estimated costs < $1 million individually(6)

$

8,553

$

5,720

6.0%-7.0%

STABILIZED - REPOSITIONING:

Rancho Pacifica - Bldgs 1 & 6 (South

488,114

488,114

100%

4Q-20

2Q-21

3Q-21

$ 89,123

$

7,596

$

96,719

$

96,724

$

635

$

6,101

6.3%

Bay)(7)

8745-8775 Production Ave. (Central SD)(8)

46,820

26,200

100%

1Q-21

2Q-21

3Q-21

8,050

1,416

9,466

9,414

78

654

6.9%

19007 Reyes Avenue (South Bay)(9)

-

-

100%

2Q-21

1Q-22

3Q-21

16,587

3,579

20,166

18,066

(6)

1,243

6.2%

TOTAL

534,934

514,314

$113,760

$

12,591

$

126,351

$

124,204

$

707

$

7,998

6.3%

FUTURE REPOSITIONING:

900 East Ball Road (North OC)

62,607

62,607

100%

4Q-21

2Q-22

2Q-22

$ 17,358

$

2,034

$

19,392

$

18,067

$

130

$

1,344

6.9%

8210-8240 Haskell Ave. (SF Valley)

53,886

53,886

0%

1Q-22

3Q-22

4Q-22

12,465

3,726

16,191

12,465

(4)

807

5.0%

3441 MacArthur Blvd. (OC Airport)

122,060

118,947

100%

1Q-22

4Q-22

1Q-23

9,038

8,035

17,073

9,224

223

1,506

8.8%

TOTAL

238,553

235,440

$ 38,861

$

13,795

$

52,656

$

39,756

$

349

$

3,657

6.9%

  • "Properties and Space Under Repositioning" are 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. A repositioning is generally considered complete once the investment is fully or nearly fully deployed and the property is available for occupancy.
    • See footnotes on page 29 -

Third Quarter 2021

Page 27

Supplemental Financial Reporting Package

Properties and Space Under Repositioning/Redevelopment* (Continued).(1)

As of September 30, 2021

(unaudited results, in thousands, except square feet)

Redevelopment

Est. Constr. Period(1)

Total

Est.

Estimated

Estimated

Projected

Projected

Cumulative

Actual

Annual

Projected

Property

Target

Purchase

Stabilized

Unlevered

Property (Submarket)

Leased %

Start

Stabilization

Redev.

Total

Investment

Cash NOI

Cash

Stabilized

RSF(10)

9/30/2021

Complet.

Period(1)(3)

Price(1)

Costs(1)

Investment(1)

to Date(1)

3Q-2021(1)

NOI(1)

Yield(1)

CURRENT REDEVELOPMENT:

28901-28903 Avenue Paine (SF Valley)(11)

111,260

100%(11)

1Q-21

4Q-21

4Q-21

$

5,515

$

11,912

$

17,427

$

15,031

$

(2)

$

1,155

6.6%

415-435 Motor Avenue (SG Valley)

94,315

-%

2Q-21

2Q-22

3Q-22

7,376

10,198

17,574

9,166

(3)

1,369

7.8%

1055 Sandhill Ave. (South Bay)

127,853

-%

3Q-21

1Q-23

3Q-23

11,994

14,399

26,393

13,101

(32)

2,071

7.8%

9615 Norwalk Blvd. (Mid-Counties)

201,467

-%

3Q-21

4Q-22

2Q-23

9,642

27,625

37,267

13,972

(3)

3,064

8.2%

15601 Avalon Blvd. (South Bay)(12)

86,830

-%

3Q-21

4Q-22

1Q-23

16,061

12,052

28,113

16,606

40

1,465

5.2%

TOTAL

621,725

$

50,588

$

76,186

$

126,774

$

67,876

$

-

$

9,124

7.2%

STABILIZED - REDEVELOPMENT:

851 Lawrence Drive (Ventura)

90,773

100%

4Q-19

2Q-21

3Q-21

$

6,663

$

12,155

$

18,818

$

18,783

$

2

$

1,203

6.4%

FUTURE REDEVELOPMENT:

9920-10020 Pioneer Blvd (Mid-

162,557

-%

3Q-21

1Q-23

3Q-23

$

23,598

$

28,382

$

51,980

$

23,965

$

(41)

$

2,708

5.2%

Counties)(12)

** 12752-12822 Monarch St. (West OC)(12)(13)

269,465

100%

4Q-21

4Q-22

1Q-23

34,098

11,744

45,842

35,965

633

3,073

6.7%

4416 Azusa Canyon Rd. (SG Valley)(12)

129,830

-%

1Q-22

4Q-22

1Q-23

12,277

13,158

25,435

13,358

(3)

1,926

7.6%

1901 Via Burton (North OC)(14)

139,269

100%

1Q-22

4Q-22

1Q-23

24,500

16,352

40,852

24,613

(9)

2,309

5.7%

8888-8892 Balboa Ave. (Central SD)(12)

128,400

-%

1Q-22

1Q-23

2Q-23

19,940

17,752

37,692

20,050

11

2,127

5.6%

2390-2444 American Way (North OC)

96,100

-%

1Q-22

1Q-23

2Q-23

17,118

13,452

30,570

17,118

(2)

1,738

5.7%

15010 Don Julian Rd. (SG Valley)(12)

219,242

100%

1Q-22

2Q-23

3Q-23

22,891

20,895

43,786

23,385

130

3,338

7.6%

12118 Bloomfield Ave. (Mid-Counties)

110,018

100%

3Q-22

4Q-23

1Q-24

16,707

13,947

30,654

16,765

111

1,920

6.3%

12772 San Fernando Rd. (SF Valley)(12)

146,746

52%

1Q-23

1Q-24

2Q-24

22,114

16,247

38,361

22,268

158

2,253

5.9%

TOTAL

1,401,627

$

193,243

$

151,929

$

345,172

$

197,487

$

988

$

21,392

6.2%

  • "Properties Under Redevelopment" are typically defined as a properties where we plan to fully or partially demolish an existing building(s) due to building obsolescence and/or a property with excess or vacant land where we plan to construct a ground-up building.

** Property is included in our Same Property Portfolio as of September 30, 2021.

- See footnotes on page 29 -

Third Quarter 2021

Page 28

Supplemental Financial Reporting Package

Properties and Space Under Repositioning/Redevelopment (Continued).(1)

As of September 30, 2021

(unaudited results, in thousands, except square feet)

Stabilized Repositionings/Redevelopments: Properties and Space

Property (Submarket)

Rentable Square Feet

Stabilized Period

Unlevered Stabilized Yield

2455 Conejo Spectrum St.(Ventura)

98,218

1Q-20

5.3%

635 8th Street (SF Valley)

72,250

1Q-20

5.0%

16121 Carmenita Road (Mid-Counties)

109,780

3Q-20

5.9%

10015 Waples Court (Central SD)

106,412

3Q-20

5.7%

1210 N. Red Gum Street (North OC)

64,570

3Q-20

6.9%

7110 E. Rosecrans Avenue - Unit B (South Bay)

37,417

3Q-20

n/a(15)

29003 Avenue Sherman (SF Valley)

68,123

4Q-20

5.1%

727 Kingshill Place (South Bay)

46,005

4Q-20

4.9%

The Merge (Inland Empire West)

333,544

2Q-21

7.0%

16221 Arthur Street (Mid-Counties)

61,372

2Q-21

7.9%

Rancho Pacifica - Bldgs 1 & 6 (South Bay)(7)

488,114

3Q-21

6.3%

8745-8775 Production Ave. (Central SD)(8)

26,200

3Q-21

6.9%

19007 Reyes Avenue (South Bay)(9)

-

3Q-21

6.2%

851 Lawrence Drive (Ventura)

90,773

3Q-21

6.4%

  1. For definitions of "Properties and Space Under Repositioning/Redevelopment," "Estimated Construction Period," "Purchase Price," "Projected Repositioning/Redevelopment Costs," "Projected Total Investment," "Cumulative Investment to Date," "Estimated Annual Stabilized Cash NOI," "Actual Cash NOI," "Estimated Unlevered Stabilized Yield" and "Stabilization Date - Properties and Space Under Repositioning" see page 35-36 in the Notes and Definitions section of this report.
  2. "Total Property RSF" is the total RSF of the entire property or particular building(s) (footnoted if applicable) under repositioning. "Repositioning/Lease-up RSF" is the actual RSF that is subject to repositioning at the property/building, and may be less than Total Property RSF.
  3. Represents the estimated quarter that the project will reach stabilization. Includes time to complete construction & lease-up the project. The actual period of stabilization may vary materially from our estimates.
  4. At 12821 Knott Street, we are repositioning the existing 120,800 RSF building and are constructing approximately 45,000 RSF of new warehouse space.
  5. As of September 30, 2021, 12133 Greenstone Avenue has been pre-leased with the lease expected to commence in March 2022, subject to completion of repositioning work.
  6. "Other Repositioning" includes 11 properties where estimated costs are generally less than $1.0 million individually. Repositioning work at these 11 properties totals 266,938 RSF. Other Repositioning is comprised of properties both included and excluded from our Same Property Portfolio.
  7. Rancho Pacifica Buildings 1 & 6 are located at 2301-2329 Pacifica Place and 2332-2366 Pacifica Place, and represent two buildings totaling 488,114 RSF, out of six buildings at our Rancho Pacifica Park property, which has a total of 1,152,883 RSF. Amounts detailed in the tables above (leased %, costs, NOI and stabilized yield) reflect only these two buildings.
  8. At 8745-8775 Production Avenue, we repositioned 26,000 RSF of the 46,820 RSF property. The stabilized yield reflects the full project and its RSF.
  9. At 19007 Reyes Avenue, a 4.5 acre industrial site, we removed the dysfunctional improvements and converted the site into a single tenant paved container storage facility.
  10. Represents the estimated rentable square footage of the project upon completion of redevelopment.
  11. As of September 30, 2021, 29025-29055 Avenue Paine has been pre-leased with the lease expected to commence in December 2021, subject to completion of redevelopment work.
  12. As of September 30, 2021, these projects have existing buildings aggregating 888,163 RSF (also included in our Total Portfolio RSF) that we intend to fully or partially demolish prior to constructing new buildings. Includes the following properties: 4416 Azusa Canyon Road (70,510 RSF),15601 Avalon Boulevard (63,690 RSF), 12752 Monarch Street (276,585 RSF), 15010 Don Julian Road (92,925 RSF), 888-8892 Balboa Avenue (86,637 RSF), 12772 San Fernando Road (140,837 RSF), and 9920-10020 Pioneer Boulevard (157,669 RSF).
  13. As of September 30, 2021, this property is includedin our Same Property Portfolio. As of September 30, 2021, 12752-12822 Monarch Street comprises two buildings totaling 276,585. One of the buildings (165,260 RSF) has an in-place lease which terminates in November 2021. After the tenant vacates we plan to demolish 104,570 RSF of the building and construct a new 97,450 RSF building in its place, as well as reposition the remaining 60,690 RSF of the original structure. At completion, the total project will contain 269,465 RSF.
  14. At 1901 Via Burton, we plan to construct a new 139,269 RSF building. In September 2021, we leased the property to a tenant under a short-term lease to provide income for part of the entitlement period.
  15. We are unable to provide a meaningful stabilized yield for this completed project as this was a partial repositioning of a larger property.

Third Quarter 2021

Page 29

Supplemental Financial Reporting Package

Current Year Acquisitions and Dispositions Summary.

As of September 30, 2021

(unaudited results)

2021 Current Period Acquisitions

Acquisition Date

Property Address

County

Submarket

Rentable Square

Acquisition

Occ. % at

Occ.% at Sep

Feet

Price ($ in MM)

Acquisition

30, 2021

1/5/2021

15010 Don Julian Road(1)

Los Angeles

San Gabriel Valley

92,925

$

22.20

100%

100%

1/11/2021

5002-5018 Lindsay Court

San Bernardino

Inland Empire - West

64,960

12.65

100%

49%

1/14/2021

514 East C Street(2)

Los Angeles

South Bay

3,436

(2)

9.95

100%

100%

1/26/2021

17907-18001 Figueroa Street

Los Angeles

South Bay

74,810

20.20

100%

100%

1/27/2021

7817

Woodley Avenue(3)

Los Angeles

Greater San Fernando Valley

36,900

9.96

100%

100%

2/4/2021

8888-8892 Balboa Avenue(1)

San Diego

Central San Diego

86,637

19.80

56%

-%

2/19/2021

9920-10020 Pioneer Boulevard(1)

Los Angeles

Mid-Counties

157,669

23.50

5%

-%

3/19/2021

2553

Garfield Avenue

Los Angeles

Los Angeles - Central

25,615

3.90

100%

100%

3/19/2021

6655

East 26th Street

Los Angeles

Los Angeles - Central

47,500

6.50

100%

100%

3/19/2021

560 Main Street

Orange

Orange County - North

17,000

2.60

100%

100%

3/23/2021

4225

Etiwanda Avenue

San Bernardino

Inland Empire - West

134,500

32.25

100%

100%

4/14/2021

12118 Bloomfield Avenue(1)

Los Angeles

Mid-Counties

63,000

16.65

100%

100%

4/15/2021

256 Alondra Boulevard(2)

Los Angeles

South Bay

2,456

(2)

11.25

100%

100%

4/23/2021

19007 Reyes Avenue(2)

Los Angeles

South Bay

-

(2)

16.35

-%

100%

4/30/2021

19431 Santa Fe Avenue(2)

Los Angeles

South Bay

14,793

(2)

10.50

100%

100%

5/21/2021

4621

Guasti Road

San Bernardino

Inland Empire - West

64,512

13.34

-%

100%

6/15/2021

12838 Saticoy Street

Los Angeles

Greater San Fernando Valley

100,390

27.25

-%

100%

6/15/2021

19951 Mariner Avenue

Los Angeles

South Bay

89,272

27.40

100%

100%

6/17/2021

East 12th Street

Los Angeles

Los Angeles - Central

257,976

93.60

96%

78%

6/22/2021

29120 Commerce Center Drive

Los Angeles

Greater San Fernando Valley

135,258

27.05

100%

100%

6/24/2021

20304 Alameda Street

Los Angeles

South Bay

77,758

13.50

100%

100%

7/8/2021

4181

Ruffin Road

San Diego

Central San Diego

150,144

35.75

100%

100%

7/16/2021

12017 Greenstone Avenue(2)

Los Angeles

Mid-Counties

-

(2)

13.50

-%

-%

7/26/2021

1901 Via Burton(1)

Orange

North Orange County

-

24.21

-%

-%

8/4/2021

1555

Cucamonga Avenue

San Bernardino

Inland Empire - West

107,023

21.00

100%

100%

8/6/2021

1800

Lomita Boulevard(2)

Los Angeles

South Bay

-

(2)

70.00

100%

100%

8/17/2021

8210-8240 Haskell Avenue

Los Angeles

Greater San Fernando Valley

53,248

12.43

-%

-%

8/20/2021

3100

Lomita Boulevard

Los Angeles

South Bay

575,976

182.05

(4)

91%

91%

8/25/2021

2401-2421 Glassell Street

Orange

North Orange County

191,127

70.03

100%

100%

8/26/2021

2390-2444 American Way(1)

Orange

North Orange County

-

16.70

-%

-%

8/26/2021

500 Dupont Avenue

San Bernardino

Inland Empire West

276,000

58.50

100%

100%

9/10/2021

1801

St. Andrew Place

Orange

OC Airport

370,374

105.30

100%

100%

9/17/2021

5772

Jurupa Street

San Bernardino

Inland Empire - West

360,000

54.00

100%

100%

9/30/2021

2500

Victoria Street(2)

Los Angeles

South Bay

-

(2)

217.07

100%

100%

Total Current Year Acquisitions through September 30, 2021:3,631,259 $ 1,300.94

*See footnotes on the following page*

Third Quarter 2021

Page 30

Supplemental Financial Reporting Package

Current Year Acquisitions and Dispositions Summary.

As of September 30, 2021

(unaudited results)

2021 Subsequent Acquisitions

Acquisition

Property Address

County

Submarket

Rentable Square

Acquisition

Occ. % at

Occ.% at Sep

Date

Feet

Price ($ in MM)

Acquisition

30, 2021

10/1/2021

1010 Belmont Street

San Bernardino

Inland Empire West

61,824

$

14.50

100%

n/a

10/12/2021

21515 Western Avenue(5)

Los Angeles

South Bay

56,199

18.95

100%

n/a

Total 2021 Acquisitions

3,749,282

$

1,334.39

2021 Current Per

iod Dispositions

Disposition

Property Address

County

Submarket

Rentable Square Feet

Sale Price

Date

($ in MM)

2/12/2021

14723-14825.25 Oxnard Street

Los Angeles

Greater San Fernando Valley

77,790

$

19.25

3/15/2021

6760 Central Avenue, Unit B

San Bernardino

Inland Empire East

9,943

1.53

5/20/2021

11529-11547 Tuxford Street

Los Angeles

Greater San Fernando Valley

29,730

8.18

9/15/2021

5803 Newton Drive

San Diego

North San Diego

71,602

18.60

Total Current Year Dispositions through September 30, 2021:

189,065

$

47.56

  1. Represents acquisition of a redevelopment site. Property is classified as a future redevelopment as of September 30, 2021. See page 28 for additional details.
  2. Represents acquisition of an industrial outdoor storage site.
  3. 7817 Woodley Avenue is part of the Van Nuys Airport Industrial Center Portfolio that was acquired in December 2020.
  4. In connection with the acquisition of 3100 Lomita Boulevard, the Company prepaid an existing loan on the property and incurred a $20.4 million prepayment fee in addition to the $182.0 million purchase price at closing.
  5. Represents acquisition of a 4 acre redevelopment site.

Third Quarter 2021

Page 31

Supplemental Financial Reporting Package

Net Asset Value Components.

As of September 30, 2021

(unaudited and in thousands, except share data)

Net Operating Income

Pro Forma Net Operating Income (NOI)(1)

Three Months Ended Sep 30, 2021

Total operating rental income

$115,260

Property operating expenses

(27,501)

Pro forma effect of uncommenced leases(2)

1,588

Pro forma effect of acquisitions(3)

8,572

Pro forma effect of dispositions(4)

(186)

Pro forma NOI effect of significant properties classified as repositioning, redevelopment and lease-up(5)

10,483

Pro Forma NOI

108,216

Amortization of net below-market lease intangibles

(3,191)

Straight line rental revenue adjustment

(5,865)

Pro Forma Cash NOI

$99,160

Balance Sheet Items

Other assets and liabilities

September 30, 2021

Cash and cash equivalents

$60,154

Restricted cash

50

Rents and other receivables, net

9,863

Other assets

18,213

Acquisition related deposits

9,610

Accounts payable, accrued expenses and other liabilities

(77,968)

Dividends payable

(37,970)

Tenant security deposits

(55,487)

Prepaid rents

(16,358)

Estimated remaining cost to complete repositioning/redevelopment projects

(244,052)

Total other assets and liabilities

$(333,945)

Debt and Shares Outstanding

Total consolidated debt(6)

$1,400,552

Preferred stock/units - liquidation preference

$229,068

Common shares outstanding(7)

151,194,469

Operating partnership units outstanding(8)

6,415,276

Total common shares and operating partnership units outstanding

157,609,745

  1. For a definition and discussion of non-GAAP financial measures, see the notes and definitions section beginning on page 33 of this report.
  2. Represents the estimated incremental base rent from uncommenced new and renewal leases as if they had commenced as of July 1, 2021.
  3. Represents the estimated incremental NOI from Q3'21 acquisitions as if they had been acquired on July 1, 2021. We have made a number of assumptions in such estimates and there can be no assurance that we would have generated the projected levels of NOI had we actually owned the acquired entities as of July 1, 2021.
  4. Represents the deduction of actual Q3'21 NOI for the properties that were sold during the current quarter. See page 31 for a detail of current year disposition properties.
  5. Represents the estimated incremental NOI from the properties that were classified as current or future repo/redev, lease-up or stabilized during the three months ended September 30, 2021, assuming that all repo/redev work had been completed and all of the properties were fully stabilized as of July 1, 2021. Includes all properties that are separately listed on pages 27-28 and excludes "Other Repositionings." We have made a number of assumptions in such estimates & there can be no assurance that we would have generated the projected levels of NOI had these properties actually been stabilized as of July 1, 2021.
  6. Excludes unamortized loan discount and debt issuance costs totaling $13.9 million.
  7. Represents outstanding shares of common stock of the Company, which excludes 250,439 shares of unvested restricted stock.
  8. Represents outstanding common units of the Company's operating partnership, Rexford Industrial Realty, L.P., that are owned by unit holders other than Rexford Industrial Realty, Inc. Includes 600,705 vested LTIP Units and 600,843 vested performance units and excludes 255,913 unvested LTIP Units and 905,732 unvested performance units.

Third Quarter 2021

Page 32

Supplemental Financial Reporting Package

Notes and Definitions.

Adjusted Funds from Operations ("AFFO"): We calculate adjusted funds from operations, or

AFFO, by adding to or subtracting from FFO, as defined below, the following items: (i) certain non- cash operating revenues and expenses, (ii) capitalized operating expenditures such as construction payroll, (iii) recurring capital expenditures required to maintain and re-tenant our properties, (iv) capitalized interest costs resulting from the repositioning/redevelopment of certain of our properties and (v) 2nd generation tenant improvements and leasing commissions. Management uses AFFO as a supplemental performance measure because it provides a performance measure that, when compared year over year, captures trends in portfolio operating results. We also believe that, as a widely recognized measure of the performance of REITs, AFFO will be used by investors as a basis to assess our performance in comparison to other REITs. However, because AFFO may exclude certain non-recurring capital expenditures and leasing costs, the utility of AFFO as a measure of our performance is limited. Additionally, other Equity REITs may not calculate AFFO using the method we do. As a result, our AFFO may not be comparable to such other Equity REITs' AFFO. AFFO should be considered only as a supplement to net income (as computed in accordance with GAAP) as a measure of our performance.

In-Place Annualized Base Rent and Uncommenced Annualized Base Rent:

  • In-PlaceAnnualized Base Rent ("In-Place ABR"): Calculated as the monthly contractual base rent (before rent abatements) per the terms of the lease, as of September 30, 2021, multiplied by
    12. Includes leases that have commenced as of September 30, 2021 or leases where tenant has taken early possession of space as of September 30, 2021. Excludes billboard and antenna revenue and tenant reimbursements.
  • In-PlaceABR per Square Foot: Calculated by dividing In-Place ABR for the lease by the occupied square feet of the lease, as of September 30, 2021.
  • Combined In-Place and Uncommenced Annualized Base Rent ("In-Place + Uncommenced ABR"): Calculated by adding (i) In-Place ABR and (ii) ABR Under Uncommenced Leases (see definition below). Does not include adjustments for leases that expired and were not renewed subsequent to September 30, 2021, or adjustments for future known non-renewals.
  • ABR Under Uncommenced Leases: Calculated by adding the following:
    1. ABR under Uncommenced New Leases = first full month of contractual base rents (before rent abatements) to be received under Uncommenced New Leases, multiplied by 12.
    2. Incremental ABR under Uncommenced Renewal Leases = difference between: (a) the first full month of contractual base rents (before rent abatements) to be received under Uncommenced Renewal Leases and (b) the monthly In-Place ABR for the same space as of September 30, 2021, multiplied by 12.
  • In-Place+ Uncommenced ABR per Square Foot: Calculated by dividing (i) In-Place + Uncommenced ABR for the leases by (ii) the square footage under commenced and uncommenced leases (net of renewal space) as of September 30, 2021.
  • Uncommenced New Leases: Reflects new leases (for vacant space) that have been signed but have not yet commenced as of September 30, 2021.
  • Uncommenced Renewal Leases: Reflects renewal leases (for space occupied by renewing tenant) that have been signed but have not yet commenced as of September 30, 2021.

Capital Expenditures, Non-recurring: Expenditures made with respect to a property for repositioning, redevelopment, major property or unit upgrade or renovation, and further includes capital expenditures for seismic upgrades, roof or parking lot replacements and capital expenditures for deferred maintenance existing at the time such property was acquired.

Capital Expenditures, Recurring: Expenditures made with respect to a property for maintenance of such property and replacement of items due to ordinary wear and tear including, but not limited to, expenditures made for maintenance of parking lot, roofing materials, mechanical systems, HVAC systems and other structural systems. Recurring capital expenditures shall not include any of the following: (a) major upgrade or renovation of such property not necessary for proper maintenance or marketability of such property; (b) capital expenditures for seismic upgrades; (c) capital expenditures for deferred maintenance for such property existing at the time such property was acquired; or (d) replacements of either roof or parking lots.

Capital Expenditures, First Generation: Capital expenditures for newly acquired space, newly developed or redeveloped space, or change in use.

Cash NOI: Cash basis 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 adjustment. We use Cash NOI, together with NOI, as a supplemental performance measure. Cash NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. Cash NOI should not be used as a substitute for cash flow from operating activities computed in accordance with GAAP. We use Cash NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

Core Funds from Operations ("Core FFO"): We calculate Core FFO by adjusting FFO, as defined below, to exclude the impact of certain items that we do not consider reflective of our core revenue or expense streams. Core FFO adjustments consist of (i) acquisition expenses, (ii) loss on extinguishment of debt, (iii) the amortization of the loss on termination of interest rate swaps and (iv) other amounts as they may occur. 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 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. "Company Share of Core FFO" reflects Core FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends, but excludes non-recurring preferred stock redemption charges related to the write-off of original issuance costs which we do not consider reflective of our core revenue or expense streams).

Third Quarter 2021

Page 33

Supplemental Financial Reporting Package

Notes and Definitions.

Debt Covenants ($ in thousands)

September 30, 2021

Current Period

Credit Facility

Senior Notes

and $150M Term

($100M, $125M,

Covenant

Loan

$25M, $75M)

Maximum Leverage Ratio

less than 60%

20.7%

21.7%

Maximum Secured Leverage Ratio

less than 45%

1.8%

N/A

Maximum Secured Leverage Ratio

less than 40%

N/A

1.9%

Maximum Secured Recourse Debt

less than 15%

N/A

-%

Minimum Tangible Net Worth

$4,342,519

$4,961,137

N/A

Minimum Tangible Net Worth

$4,237,489

N/A

$4,961,137

Minimum Fixed Charge Coverage Ratio

at least 1.50 to 1.00

6.0 to 1.00

6.0 to 1.00

Unencumbered Leverage Ratio

less than 60%

20.5%

21.5%

Unencumbered Interest Coverage Ratio

at least 1.75 to 1.00

9.70 to 1.00

9.70 to 1.00

September 30, 2021

$400M 2.125%

Current Period

Senior Notes

and $400M 2.15%

Covenant

Senior Notes

Maximum Debt to Total Asset Ratio

less than 60%

20.9%

Maximum Secured Debt to Total Asset Ratio

less than 40%

1.9%

Minimum Debt Service Coverage Ratio

at least 1.50 to 1.00

5.7 to 1.00

Minimum Unencumbered Assets to Unsecured Debt Ratio

at least 1.50 to 1.00

5.0 to 1.00

Our actual performance for each covenant is calculated based on the definitions set forth in each loan agreement/indenture.

EBITDAre and Adjusted EBITDA: We calculate EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre is calculated as net income (loss) (computed in accordance with GAAP), before interest expense, tax expense, depreciation and amortization, gains (or losses) from sales of depreciable operating property, impairment losses and adjustments to reflect our proportionate share of EBITDAre from our unconsolidated joint venture. We calculate Adjusted EBITDA by adding or subtracting from EBITDAre the following items: (i) non-cash stock based compensation expense, (ii) gain (loss) on extinguishment of debt, (iii) acquisition expenses and (iv) the pro-forma effects of acquisitions and dispositions. We believe that EBITDAre and Adjusted EBITDA are helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use these measures in ratios to compare our performance to that of our industry peers. In addition, we believe EBITDAre and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because EBITDAre and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our liquidity is limited. Accordingly, EBITDAre and Adjusted EBITDA should not be considered

alternatives to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. EBITDAre and Adjusted EBITDA should not be considered as alternatives to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate EBITDAre and Adjusted EBITDA differently than we do; accordingly, our EBITDAre and Adjusted EBITDA may not be comparable to such other Equity REITs' EBITDAre and Adjusted EBITDA. EBITDAre and Adjusted EBITDA should be considered only as supplements to net income (as computed in accordance with GAAP) as a measure of our performance.

Fixed Charge Coverage Ratio:

For the Three Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2021

2021

2021

2020

2020

EBITDAre

$ 75,587

$ 69,108

$ 64,679

$ 57,434

$ 53,638

Amortization of above/below

(3,191)

(3,386)

(2,712)

(2,711)

(2,751)

market lease intangibles

Non-cash stock compensation

4,506

4,463

4,261

2,491

3,101

Loss on extinguishment of debt

505

-

-

104

-

Straight line rental revenue adj.

(5,865)

(4,840)

(4,199)

(434)

(3,088)

Capitalized payments

(2,062)

(1,700)

(1,590)

(1,331)

(1,279)

Recurring capital expenditures

(2,509)

(2,053)

(2,541)

(2,671)

(1,380)

2nd gen. tenant improvements &

(2,523)

(4,885)

(3,528)

(1,741)

(2,243)

leasing commissions

Cash flow for fixed charge

64,448

56,707

54,370

51,141

45,998

coverage calculation

Cash interest expense calculation detail:

Interest expense

10,427

9,593

9,752

8,673

7,299

Capitalized interest

1,277

893

732

818

1,163

Note payable premium amort.

(23)

28

29

47

66

Amort. of deferred financing costs

(508)

(447)

(447)

(408)

(373)

Amort. of swap termination fee

(655)

(410)

(410)

(218)

-

Cash interest expense

10,518

9,657

9,656

8,912

8,155

Scheduled principal payments

531

332

319

241

205

Preferred stock/unit dividends

3,684

4,345

4,344

4,344

4,344

Fixed charges

$ 14,733

$ 14,334

$ 14,319

$ 13,497

$ 12,704

Fixed Charge Coverage Ratio

4.4 x

4.0 x

3.8 x

3.8 x

3.6 x

NAREIT Defined Funds from Operations ("FFO"): We calculate FFO in accordance with the standards established by NAREIT. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) on sale of real estate assets, gains (or losses) on sale of assets incidental to our business, impairment losses of depreciable operating property or assets incidental to our business, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated 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 or assets incidental to our business, other

Third Quarter 2021

Page 34

Supplemental Financial Reporting Package

Notes and Definitions.

than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate and other assets incidental to our business, 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. "Company Share of FFO" reflects FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders (which consists of preferred stock dividends and any preferred stock redemption charges related to the write-off of original issuance costs).

Net Operating Income ("NOI"): NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations including i) rental income, ii) tenant reimbursements, and iii) other income less property expenses. We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense, general and administrative expenses, interest expense, gains (or losses) on sale of real estate and other non-operating items, 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 real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs' NOI. Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio.

Proforma NOI: Proforma NOI is calculated by adding to NOI the following adjustments: (i) the estimated impact on NOI of uncommenced leases as if they had commenced at the beginning of the reportable period, (ii) the estimated impact on NOI of current period acquisitions as if they had been acquired at the beginning of the reportable period, (iii) the actual NOI of properties sold during the current period and (iv) the estimated incremental NOI from properties that were classified as repositioning/lease-up properties as of the end of the reporting period, assuming that all repositioning work had been completed and the properties/space were fully stabilized as of the beginning of the

reportable period. These estimates do not purport to be indicative of what operating results would have been had the transactions actually occurred at the beginning of the reportable period and may not be indicative of future operating results.

Definitions Related to Properties and Space Under Repositioning/Redevelopment:

  • 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. A repositioning is generally considered complete once the investment is fully or nearly fully deployed and the property is available for occupancy.
  • Properties Under Redevelopment: Typically defined as a properties where we plan to fully or partially demolish an existing building(s) due to building obsolescence and/or a property with excess or vacant land where we plan to construct a ground-up building.
  • Estimated Construction Period: The "Start" of the Estimated Construction Period is our current estimate of the period in which we will start physical construction on a property. Prior to 4Q-2020, we defined the "Start" as the period in which we began activities to get a property ready for its intended use, which included pre-construction activities, including securing entitlements or permits, design, site work, and other necessary activities preceding construction. The Target Completion of the Estimated Construction Period is our current estimate of the period in which we will have substantially completed a project and the project is made available for occupancy. We expect to update our timing estimates on a quarterly basis.
  • Purchase Price: Represents the contractual purchase price of the property plus closing costs.
  • Projected Repositioning/Redevelopment Costs: Represents the estimated costs to be incurred to complete construction and lease-up each repositioning/redevelopment project. Estimated costs include (i) nonrecurring capital expenditures, (ii) estimated tenant improvement allowances/costs and (iii) estimated leasing commissions. We expect to update our estimates upon completion of the project, or sooner if there are any significant changes to expected costs from quarter to quarter. Excludes capitalized costs including capitalized interest, property taxes, insurance and compensation.
  • Projected Total Investment: Includes the sum of the Purchase Price and Projected Repositioning/Redevelopment Costs.
  • Cumulative Investment to Date: Includes the Purchase Price and nonrecurring capital expenditures, tenant improvement costs and leasing commission costs incurred as of the reporting date.
  • Estimated Annual Stabilized Cash NOI: Represents management's estimate of each project's annual Cash NOI once the property has reached stabilization and initial rental concessions, if any, have elapsed. Actual results may vary materially from our estimates.
  • Actual Quarterly NOI: Represents the actual cash NOI (a non-GAAP measure defined on page
    1. for the repositioning/redevelopment property for the entire reported quarter or from the date of acquisition if such property was acquired during the current reported quarter.
  • Estimated Unlevered Stabilized Yield: Calculated by dividing each project's Estimated Annual Stabilized Cash NOI by its Projected Total Investment.

Third Quarter 2021

Page 35

Supplemental Financial Reporting Package

Notes and Definitions.

  • Stabilization Date - Properties and Space Under Repositioning/Redevelopment: We
    consider a repositioning/redevelopment 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/ redevelopment construction work.

Rental Income: See below for a breakdown of consolidated rental income for the last five trailing quarters. We believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the our performance.

Three Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2021

2021

2021

2020

2020

Rental revenue (before

$

95,862

$

86,935

$

83,349

$

75,990

$

71,632

collectability adjustment)

Tenant reimbursements

19,024

17,119

16,644

14,468

13,247

Other income

232

303

147

151

222

(Reduction) increase in

revenue due to change in

142

(121)

(496)

(2,114)

(1,479)

collectability assessment

Rental income

115,260

104,236

99,644

88,495

83,622

Rent Change - Cash: Compares the first month cash rent excluding any abatement on new/renewal leases to the last month rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year or (iv) lease terms shorter than six months.

Rent Change - GAAP: Compares GAAP rent, which straightlines rental rate increases and abatements, on new/renewal leases to GAAP rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, (iii) space that has been vacant for over one year or (iv) lease terms shorter than six months.

Same Property Portfolio ("SPP") (previously referred to as the "Stabilized Same Property Portfolio."): Our 2021 SPP is a subset of our consolidated portfolio and includesproperties that were wholly owned by us for the period from January 1, 2020 through September 30, 2021, and excludes

  1. any properties that were acquired or sold during the period from January 1, 2020 through September 30, 2021, and (ii) properties acquired prior to January 1, 2020 that were or will be classified as repositioning/redevelopment (current and future) or lease-up during 2020 and 2021 (unless otherwise noted), which we believe will significantly affect the properties' results during the comparative periods.

SPP Historical Information: The table below reflects selected information related to our SPP as initially reported in each quarter's respective supplemental package.

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

# of Properties

194

195

195

159

159

Square Feet

24,652,152

24,721,010

24,720,199

19,688,025

19,690,990

Ending Occupancy

98.8 %

98.4 %

98.6 %

98.2 %

98.4 %

SPP NOI

9.7 %

10.1 %

6.8 %

2.5 %

4.4 %

SPP Cash NOI

13.3 %

22.0 %

8.2 %

7.1 %

5.0 %

Same Property Portfolio Rental Income: See below for a breakdown of 2021 & 2020 rental income for our SPP. We believe this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the our performance.

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

$

%

2021

2020

$

%

Change

Change

Change

Change

Rental revenue

$

67,658

$

62,523

$

5,135

8.2%

$ 198,704

$ 185,033

$ 13,671

7.4%

Tenant

12,478

11,814

664

5.6%

37,277

34,211

3,066

9.0%

reimbursements

Other income

142

206

(64)

(31.1)%

461

386

75

19.4%

Rental income

$

80,278

$

74,543

$

5,735

7.7%

$ 236,442

$ 219,630

$ 16,812

7.7%

Reconciliation of Net Income to NOI and Cash NOI (in thousands):

Three Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2021

2021

2021

2020

2020

Net Income

$

40,186

$

26,037

$

30,643

$

18,155

$

31,197

Add:

General and administrative

11,806

10,695

11,480

9,042

9,464

Depreciation & amortization

38,676

36,228

35,144

30,554

28,811

Acquisition expenses

4

2

29

35

70

Interest expense

10,427

9,593

9,752

8,673

7,299

Loss on extinguishment of debt

505

-

-

104

-

Subtract:

Mgmt, leasing, & dvlpmt services

136

109

105

95

118

Interest income

7

15

14

59

116

Gain (loss) on sale of real estate

13,702

2,750

10,860

(52)

13,669

NOI

$

87,759

$

79,681

$

76,069

$

66,461

$

62,938

S/L rental revenue adj.

(5,865)

(4,840)

(4,199)

(434)

(3,088)

Amortization of above/below

(3,191)

(3,386)

(2,712)

(2,711)

(2,751)

market lease intangibles

Cash NOI

$

78,703

$

71,455

$

69,158

$

63,316

$

57,099

Third Quarter 2021

Page 36

Supplemental Financial Reporting Package

Notes and Definitions.

Reconciliation of Net Income to Total Portfolio NOI, Same Property Portfolio NOI and Same Property Portfolio Cash NOI:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net income

$

40,186

$

31,197

$

96,866

$

62,740

Add:

General and administrative

11,806

9,464

33,981

27,753

Depreciation and amortization

38,676

28,811

110,048

84,715

Acquisition expenses

4

70

35

89

Interest expense

10,427

7,299

29,772

22,176

Loss on extinguishment of debt

505

-

505

-

Deduct:

Management, leasing and development services

136

118

350

325

Interest income

7

116

36

279

Gain on sale of real estate

13,702

13,669

27,312

13,669

NOI

$

87,759

$

62,938

$

243,509

$

183,200

Non-Same Property Portfolio rental income

(34,982)

(9,079)

(82,698)

(21,252)

Non-Same Property Portfolio property exp.

9,397

2,818

22,353

6,270

Same Property Portfolio NOI

$

62,174

$

56,677

$

183,164

$

168,218

Straight line rental revenue adjustment

(2,096)

(2,842)

(5,713)

(10,588)

Amort. of above/below market lease intangibles

(1,280)

(1,956)

(4,122)

(6,030)

Same Property Portfolio Cash NOI

$

58,798

$

51,879

$

173,329

$

151,600

Reconciliation of Net Income Attributable to Common Stockholders per Diluted Share Guidance to Company share of Core FFO per Diluted Share Guidance:

2021 Estimate

Low

High

Net income attributable to common stockholders

$

0.70

$

0.71

Company share of depreciation and amortization

1.06

1.06

Company share of gains on sale of real estate

(0.19)

(0.19)

Company share of FFO

$

1.57

$

1.58

Add: Series A Preferred Stock redemption charge(1)

0.02

0.02

Add: Amortization of loss on termination of interest rate swaps

0.01

0.01

Company share of Core FFO

$

1.60

$

1.61

  1. In connection with the redemption of our Series A Preferred Stock on August 16, 2021, we recognized a non-cash charge of $3.3 million, as a reduction to net income attributable to common stockholders for the original issuance costs related to the Series A Preferred Stock.

Third Quarter 2021

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Supplemental Financial Reporting Package

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Rexford Industrial Realty Inc. published this content on 20 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2021 20:32:18 UTC.