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Rexford Industrial Realty, Inc. — Earnings+Deck+Q3+2026+vF (company IR deck)
Rexford Industrial Realty, Inc. (REXR) · 26 slides · Filed Oct 22, 2026
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Slide 1 — Rexford Industrial Realty
NYSE: REXR Rexford Industrial Realty Earnings Presentation 3Q 2026 9615 Norwalk Boulevard | Mid-Counties
Slide 2 — Forward Looking Statements
2 Forward Looking Statements This presentation 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, portfolio occupancy varying from our expectations, 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 REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in tax and environmental laws; and potential liability for uninsured losses and environmental contamination. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including those discussed in our annual report on Form 10-K, for the year ended December 31, 2025, and subsequent filings with the Securities and Exchange Commission. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. Past performance is no guarantee of future results. This Presentation includes certain financial measures not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), which are used by management as a supplemental measure, have certain limitations, and should not be construed as alternatives to financial measures determined in accordance with GAAP. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP financial measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. A reconciliation to the most directly comparable GAAP measures is provided in the Appendix to this presentation. Further, we do not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition and disposition costs and other non-core items that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Unless otherwise indicated, all Rexford Industrial financial information is as of or for the quarter ended September 30, 2026. Endnotes can be found in the Appendix and are linked throughout the presentation. 2
Slide 3 — 100%
3 REXR NYSE 44M Square Feet 384 Properties $11B Entity Value1 BBB+ BBB+ Baa2 S&P3 Fitch3 Moody’s3 3.8x Net Debt/Adjusted EBITDAre 2 Prime Infill Southern California 100% 15996 Jurupa Avenue | Inland Empire West 3
Slide 4 — Key Messages
4 Key Messages Increasing 2026 Guidance Core FFO/sh increased 2c at the midpoint, reflecting improved Same Property Portfolio NOI and occupancy expectations and stronger tenant health Improving Infill SoCal Market Fundamentals Second consecutive quarter of positive net absorption; improving fundamentals drove 3.7M SF of leasing across the portfolio, including 600K SF of repositioning and developments, and a 200 bps increase in Same Property occupancy Executing Strategic Priorities — Portfolio Realignment Completed $1.5B of the $2.0B portfolio realignment YTD; redeploying proceeds into deleveraging & share repurchases Prioritizing Low Leverage & Ample Liquidity 3.8x Net Debt/Adjusted EBITDAre 1, down 0.7x from 2Q26; $1.7B of liquidity2
Slide 5 — Advancing Strategic Priorities
5 Executing a disciplined, return-driven strategy focused on portfolio realignment & operational rigor to position Rexford for more durable growth Portfolio Realignment A proactive $2.0B disposition plan that improves portfolio quality, strengthens the durability of our cash flows & enhances our value creation business model Sold $1.5B of targeted disposition assets Includes $1.2B portfolio transaction Continuing to progress on remaining $500M of dispositions Capital Recycling Redeploying capital to improve balance sheet strength, increase financial flexibility & allocate toward the highest risk-adjusted return opportunities, including accretive share repurchases Repaid $492M of debt Repurchased $709M of shares1 Lowered leverage to 3.8x; on track to reach ~3.5x by year-end Operational Rigor Prioritizing occupancy; driving G&A expense efficiency & effectiveness +85 bps increase to average Same Property occupancy guidance since initial outlook Executed 10M SF of leases, including 784K SF of repositioning & development leases Reduced YTD G&A by $17.6M (30% reduction YoY) Strategic Priorities 2026 Progress Advancing Strategic Priorities
Slide 6 — Executing Disciplined Capital Allocation
6 Executing Disciplined Capital Allocation YTD 2026 $709M Share Repurchases1 $1.5B Total Disposition Proceeds $492M Debt Repayments Redeploying Disposition Proceeds Balance Sheet Share Repurchases Repositioning & Select Development Reduce leverage with focus on 2027 maturities & enhanced liquidity Share repurchases when valuation supports attractive FFO & NAV per- share accretion Execution of value creation opportunities through high- yielding internal projects $492M of debt repaid, including $425M of 2027 maturities $709M of shares repurchased1 at an implied yield in the mid- 6% range YTD & near-term project starts targeting an average stabilized return on cost of ~7.0%
Slide 7 — Advancing Portfolio Realignment: $1.5B Completed
7 Advancing Portfolio Realignment: $1.5B Completed Year to Date 2.7 years Weighted Average Lease Term $1.2B Total Sales Price 22 Properties 28% Above-Market In-Place Rents 5.2M Square Feet 5.5% Estimated 2027 Cash NOI Yield Portfolio Realignment $2.0B A planned 2026 disposition initiative comprised of non-core assets with limited long- term value creation opportunity & elevated competitive supply 3Q 2026 Portfolio Transaction Details
Slide 8 — Capital Allocation Creating Shareholder Value
8 $250M $450M $550M $959M 4.4x 4.5x 4.5x 3.8x 3.0x 3.2x 3.4x 3.6x 3.8x 4.0x 4.2x 4.4x 4.6x $0M $100M $200M $300M $400M $500M $600M $700M $800M $900M $1,000M FY25 1Q26 2Q26 YTD26 2025-2026 Cumulative Share Repurchases & Leverage Cumulative Share Repurchases Net Debt/Adjusted EBITDAre Capital Allocation Creating Shareholder Value Nearly $1.0B of repurchases since 2025, 10% of shares outstanding, contributing to FFO & NAV per share growth Net Debt/Adjusted EBITDAre1 YTD262
Slide 9 — Enhancing Financial Flexibility
9 2Q26 3Q26 1Q27 Pro Forma1 2027 Debt Maturities Net Debt/Adjusted EBITDAre2 4.5x 3.8x ~3.5x Enhancing Financial Flexibility $1,019M $594M $19M Substantially addressing near-term debt maturities, strengthening financial flexibility & mitigating refinancing risk in today’s higher-rate environment
Slide 10 — Infill SoCal Experiences Second Consecutive Quarter of
10 0% 1% 2% 3% 4% 5% 6% -6M -4M -2M 0M 2M 4M 6M 8M 10M 12M 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Infill SoCal Market Net Absorption & Vacancy Market Net Absorption (SF) Market Vacancy Infill SoCal Experiences Second Consecutive Quarter of Positive Net Absorption 1 3Q26 Market Highlights — 5.4% infill SoCal market vacancy, up 7 basis points sequentially — 1.9M SF positive net absorption — Market rents +1% QoQ, (1)% YoY & (23)% from peak — Continued quarters of positive net absorption remain a key prerequisite for market inflection
Slide 11 — Continued Improvement in Infill SoCal Market Fundamentals
11 -0.5% 0.0% 0.5% 1.0% 1.5% Infill SoCal Net Absorption1 2Q26 Net Absorption 3Q26 Net Absorption Continued Improvement in Infill SoCal Market Fundamentals Broad-based improvement in net absorption quarter-over-quarter; performance continues to vary by size, submarket & quality Rexford’s portfolio captures outsized demand, reflecting differentiated quality & resilience of portfolio 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 3Q25 4Q25 1Q26 2Q26 3Q26 Vacancy2 Rexford SP Vacancy Infill SoCal Total Vacancy
Slide 12 — Supply Constraints Support Long-Term Fundamentals
12 0.0% 0.5% 1.0% 1.5% 2.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Supply Constraints Support Long-Term Fundamentals Infill SoCal Under Construction as % of Total Stock1 (1Q19-3Q26) Unprecedented Inability to Add Supply What is the Regulation? — More recent CA state legislation (AB 98 & SB 415) and increasing municipal zoning limitations materially impede new development in infill areas — Repositioning improvements largely unimpacted by regulation Why it Matters? — Regulation increases cost, complexity and entitlement risk, significantly impacting the financial feasibility of adding new supply — Supply under construction at multi-decade lows, with limited ability to add new product Why is Rexford Well Positioned? — Higher barriers to entry reinforce the scarcity value of Rexford’s existing infill industrial assets, supporting long-term rent growth and asset value — Rexford’s value creation repositioning platform delivers higher functionality and quality to existing product, meeting demand that would have previously been satisfied by new supply Average = 1.2%
Slide 13 — 3Q 2026
3Q 2026 Highlights 13
Slide 14 — 2026 Guidance Expectations
14 2026 Guidance Expectations 3Q 2026 Updated Guidance 2Q 2026 Guidance Initial 2026 Guidance Earnings Company share of Core FFO per diluted share $2.41 – $2.44 $2.38 – $2.43 $2.35 – $2.40 Same Property Portfolio Same Property Portfolio NOI Growth - Net Effective (0.25)% – 0.25% (1.25)% – (0.25)% (2.5)% – (1.5)% Same Property Portfolio NOI Growth - Cash 0.25% – 0.75% (0.75)% – 0.25% (2.0)% – (1.0)% Average Same Property Portfolio Occupancy (Full Year) 95.8% – 96.0% 95.3% – 95.7% 94.8% – 95.3% Capital Allocation Dispositions $1.7B – $2.0B $1.5B – $2.0B $400M – $500M Repositioning/Development Annualized Stabilized Cash NOI $16M – $18M $16M – $18M $19M – $21M Repositioning/Development Starts (SF) 0.8M 1.2M 1.1M Repositioning/Development Starts (Total Estimated Project Costs) $125M – $130M $160M – $170M $140M – $150M Other Assumptions General and Administrative Expenses +/- $57M +/- $57M +/- $60M Interest Expense4 +/- $105M +/- $105M +/- $112M 1 2 3
Slide 15 — 2026 Guidance Rollforward
15 2026 Guidance Rollforward 1 Earnings Components Range ($ per share) Notes 2026 Core FFO per Diluted Share (Previous) $2.38 – $2.43 Same Property Portfolio NOI Change - Net Effective 0.03 – 0.01 Projected higher average occupancy driven by better-than-expected leasing; lower projected bad debt expense 2026 Core FFO per Diluted Share (Current) $2.41 – $2.44 Core FFO per Diluted Share Annual Growth 0.4% – 1.7%
Slide 16 — Financial
16 Financial 1 $0.60 Core FFO/Share (2.6)% Same Property Net Effective NOI Growth (1.1)% Same Property Cash NOI Growth 0.0% Growth All growth percentages compare to the prior year period. 3Q 2026 $1.85 Core FFO/Share (0.1)% Same Property Net Effective NOI Growth 0.9% Same Property Cash NOI Growth 1.6% Growth YTD 2026
Slide 17 — Operations
17 Operations YTD 2026 95.6% Average Same Property Occupancy 3.5% Average Embedded Rent Steps1 (3.0)% Cash Leasing Spreads 3.7M Leased Square Feet 7.1% Net Effective Leasing Spreads 3Q 2026 96.9% Ending Same Property Occupancy +200 bps v. 2Q26 +10 bps v. 2Q26 95.9% Average Same Property Occupancy (10.7)% Cash Leasing Spreads 10.0M Leased Square Feet (3.2)% Net Effective Leasing Spreads 3.4% Average Embedded Rent Steps1
Slide 18 — Dispositions
18 Dispositions 25 Closed Dispositions $1.3B Total Sales Price 3Q 2026 YTD 2026 5.5M Square Feet $1.5B Total Sales Price 37 Closed Dispositions 6.4M Square Feet
Slide 19 — Repositioning & Development
19 Repositioning & Development $15M Total Investment for Stabilized Projects $14.2M Leased Annualized Cash NOI1 47K Stabilized Square Feet 599K Leased Square Feet 1 Stabilized Project 13.8% Stabilized Return on Cost2 3Q 2026 $161M Total Investment for Stabilized Projects $17.5M Leased Annualized Cash NOI1 388K Stabilized Square Feet 784K Leased Square Feet 5 Stabilized Projects 7.7% Stabilized Return on Cost2 YTD 2026
Slide 20 — Appendix
Appendix Endnotes Non-GAAP Reconciliations Definitions 20
Slide 21 — Endnotes
21 Endnotes SLIDE 3 1. Calculated as the market value of fully diluted common shares (including common shares outstanding, Operating Partnership units, unvested shares of restricted stock, vested and unvested LTIP units and performance units) as of 9/30/2026, plus liquidation value of preferred equity and total net debt at balance sheet carrying value as of 9/30/2026. 2. Adjusted EBITDAre is a Non-GAAP financial measure. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for descriptions and reconciliations of Adjusted EBITDAre. 3. These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies. SLIDE 4 1. Adjusted EBITDAre is a Non-GAAP financial measure. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for descriptions and reconciliations of Adjusted EBITDAre. 2. Total liquidity reflects ending cash balance of approximately $424 million and nearly full availability on our $1.25 billion revolver. SLIDE 12 1. Source: CBRE Research 1Q 2019 to 3Q 2026. Infill SoCal refers to Greater Los Angeles, Inland Empire West, Orange County and San Diego; excludes Inland Empire East, Southwest Riverside, East County San Diego and Otay Mesa. SLIDE 11 1. Source: CBRE Research 2Q 2026 to 3Q 2026. Infill SoCal refers to Greater Los Angeles, Inland Empire West, Orange County and San Diego; excludes Inland Empire East, Southwest Riverside, East County San Diego and Otay Mesa. 2. Source: Rexford Same Property Portfolio ending occupancy 3Q 2025 to 3Q 2026, restated as of 9/30/2026, and CBRE Research 3Q 2025 to 3Q 2026. Infill SoCal refers to Greater Los Angeles, Inland Empire West, Orange County and San Diego; excludes Inland Empire East, Southwest Riverside, East County San Diego and Otay Mesa. SLIDE 10 1. Source: CBRE Research 1Q 2019 to 3Q 2026. Infill SoCal refers to Greater Los Angeles, Inland Empire West, Orange County and San Diego; excludes Inland Empire East, Southwest Riverside, East County San Diego and Otay Mesa. SLIDE 5 1. Share repurchases year to date as of 10/22/2026. SLIDE 8 1. Adjusted EBITDAre is a Non-GAAP financial measure. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for descriptions and reconciliations of Adjusted EBITDAre. 2. Year to date as of 10/22/2026. SLIDE 9 1. Pro forma assumes repayment of $575 million Exchangeable Senior Notes at maturity in 1Q 2027. 2. Adjusted EBITDAre is a Non-GAAP financial measure. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for descriptions and reconciliations of Adjusted EBITDAre. SLIDE 6 1. Share repurchases year to date as of 10/22/2026. SLIDE 14 1. The Company’s 2026 guidance reflects management’s view of current and future market conditions, including current expectations with respect to rental rates and occupancy levels. 2026 Core FFO Guidance represents the in-place portfolio as of 10/22/2026, as well as guidance expectations related to investment activity. To the extent actual results differ from the Company’s current expectations, its results may differ materially from the guidance set forth here. 2. 2026 Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly owned by us for the period from 1/1/2025 through 10/22/2026 and excludes properties that were or will be classified as repositioning or development (current and future) or lease-up during 2025 and 2026 (unless otherwise noted) and select buildings in other repositioning and properties included in the 2026 disposition guidance. 3. Represents estimated annualized Cash NOI for repositioning and development projects expected to stabilize in 2026, including projects that stabilized in 1Q through 3Q 2026. 4. Interest Expense excludes the $2.9 million gain on the termination of interest rate swaps associated with the repayment of the $300 million term loan due May 2027 recognized in 3Q 2026.
Slide 22 — Endnotes (cont.)
22 SLIDE 19 1. Annualized Cash NOI associated with leases executed through 9/30/2026 for repositioning and development projects. Excludes projects in other repositioning. 2. Stabilized Return on Cost is a Non-GAAP financial measure. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for a description of stabilized return on cost. SLIDE 17 1. Annual contractual rental rate increases for leases executed in 3Q 2026 and year to date 2026. Endnotes (cont.) SLIDE 15 1. The Company’s 2026 guidance reflects management’s view of current and future market conditions, including current expectations with respect to rental rates and occupancy levels. 2026 Guidance represents the in-place portfolio as of 10/22/2026, as well as guidance expectations related to investment activity. To the extent actual results differ from the Company’s current expectations, its results may differ materially from the guidance set forth here. SLIDE 16 1. NOI and Core FFO are Non-GAAP financial measures. Please refer to the Non-GAAP Reconciliations and Definitions on the following pages of this presentation for descriptions and reconciliations of NOI and Core FFO.
Slide 23 — Non-GAAP Reconciliations
23 Net Operating Income ($ in ‘000s) Quarter Ended 9/30/2026 Quarter Ended 9/30/2025 Net income $18,070 $93,056 General & administrative 13,431 20,037 Depreciation & amortization 74,440 81,172 Other expenses, net 2,561 4,218 Interest expense 24,785 25,463 Debt extinguishment and modification expenses 194 — Management & leasing services — (118) Interest income (3,266) (6,367) Impairment of real estate 71,834 — Gains on sale of real estate (23,208) (28,583) Net Operating Income (NOI) $178,841 $ 188,878 Straight line rental revenue adjustments (6,000) (8,164) Above/(below) market lease revenue adjustments (3,438) (5,254) Cash NOI $169,403 $175,460 Source: Company filings Non-GAAP Reconciliations
Slide 24 — Funds from Operations ($ in ‘000s, except per share data)
24 Funds from Operations ($ in ‘000s, except per share data) Quarter Ended 9/30/2026 Quarter Ended 9/30/2025 Net income $18,070 $93,056 Depreciation and amortization 74,440 81,172 Impairment of real estate 71,834 — Gains on sale of real estate (23,208) (28,583) Funds from Operations (FFO) $141,136 $145,645 Less: preferred stock dividends (2,314) (2,314) Less: FFO, attributable to noncontrolling interests (5,358) (4,906) Less: FFO, attributable to participating securities (610) (713) Company Share of FFO $132,854 $137,712 FFO $141,136 $145,645 Acquisition expenses — 161 Debt extinguishment and modification expenses 194 — Gain on termination of interest rate swaps (2,874) — Non-capitalizable demolition costs 1,309 — Co-CEO transition costs 528 — Severance costs 680 2,728 Other nonrecurring expenses — 1,259 Core FFO $140,973 $149,793 Less: preferred stock dividends (2,314) (2,314) Less: FFO, attributable to noncontrolling interests (5,351) (5,045) Less: FFO, attributable to participating securities (610) (734) Company Share of Core FFO $132,698 $141,700 Weighted-average shares outstanding - diluted 220,510 234,587 Company Share of Core FFO per share - basic $0.60 $0.60 Company Share of Core FFO per share - diluted $0.60 $0.60 Source: Company filings EBITDAre and Adjusted EBITDAre ($ in ‘000s) Quarter Ended 9/30/2026 Quarter Ended 9/30/2025 Net income $18,070 $93,056 Interest expense 24,785 25,463 Depreciation and amortization 74,440 81,172 Impairment of real estate 71,834 — Gains on sale of real estate (23,208) (28,583) EBITDAre $165,921 $171,108 Stock-based compensation amortization 4,106 10,485 Debt extinguishment and modification expenses 194 — Acquisition expenses — 161 Non-capitalizable demolition costs 1,309 — Co-CEO transition costs 528 — Other nonrecurring expenses — 1,259 Pro forma effect of dispositions (15,234) (389) Adjusted EBITDAre $156,824 $182,624
Slide 25 — Definitions
25 Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI (i) fair value lease revenue and (ii) straight-line rent 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 believe that Core FFO is a useful supplemental measure and that by adjusting for items that are not considered by us to be part of our on going operating performance, provides a more meaningful and consistent comparison of the Company’s operating and financial performance period-over-period. 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). Estimated Stabilized Return on Cost: Calculated by dividing each project’s Annualized Stabilized Cash NOI by its Projected Total Investment. 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 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 Debt to Adjusted EBITDAre: Calculated as Net Debt divided by annualized Adjusted EBITDAre. We calculate Adjusted EBITDAre as net income or 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 of depreciable property, non-cash stock-based compensation expense, write-offs of below market lease intangibles related to unexercised renewal options, gains (or losses) on debt extinguishment and debt modification expenses, acquisition expenses, non-capitalizable demolition costs and the pro-forma effects of dispositions and other nonrecurring expenses. We believe that Adjusted EBITDAre is 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 this measure in ratios to compare our performance to that of our industry peers. In addition, we believe Adjusted EBITDAre is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because Adjusted EBITDAre is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, Adjusted EBITDAre should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. Adjusted EBITDAre should not be considered as an alternative to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate Adjusted EBITDAre differently than we do; accordingly, our Adjusted EBITDAre may not be comparable to such other Equity REITs’ Adjusted EBITDAre. Adjusted EBITDAre should be considered only as a supplement to net income or loss (as computed in accordance with GAAP) as a measure of our performance. 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. Definitions
Slide 26 — www.rexfordindustrial.com
www.rexfordindustrial.com