REXFORD INDUSTRIAL REALTY, INC. (NYSE:REXR) Files An 8-K Completion of Acquisition or Disposition of Assets

ME Staff 8-k
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REXFORD INDUSTRIAL REALTY, INC. (NYSE:REXR) Files An 8-K Completion of Acquisition or Disposition of Assets

ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

On November 22, 2016, Rexford Industrial Realty, Inc., through
its operating partnership, Rexford Industrial Realty, L.P.,
completed the sale of a 115,760 rentable square foot industrial
property located at 22343-22349 La Palma Avenue, in Yorba Linda,
California, to an unaffiliated third party for a contract price
of $17.0 million.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(b) The following pro forma financial statements are filed
herewith:
Pro Forma Condensed Consolidated Balance Sheet as of September
30, 2016 (unaudited)
Pro Forma Condensed Consolidated Statement of Operations for the
Nine Months Ended September 30, 2016 (unaudited)
Pro Forma Condensed Consolidated Statement of Operations for the
Year Ended December 31, 2015 (unaudited)
Notes to the Pro Forma Condensed Consolidated Financial
Statements
REXFORD INDUSTRIAL REALTY, INC.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated balance
sheet as of September 30, 2016, is based on Rexford Industrial
Realty, Inc.s (the Company) historical consolidated balance sheet
and gives effect to the sale on November 22, 2016, of a 115,760
rentable square foot industrial property located at 22343-22349
La Palma Avenue, in Yorba Linda, California (the Property), for a
contract price of $17.0 million as if such transaction had
occurred on September 30, 2016. The unaudited pro forma condensed
consolidated statements of operations for the nine months ended
September 30, 2016, and the year ended December 31, 2015, have
been prepared to reflect the estimated effect of the disposition
of the Property as if such transaction had occurred on January 1,
2015.
The unaudited pro forma financial information is not necessarily
indicative of what the Companys results of operations or
financial condition would have been assuming the disposition of
the Property had occurred on the dates discussed above, nor is it
indicative of the Companys results of operations or financial
condition for future periods. In managements opinion, all
adjustments necessary to reflect the effect of the disposition
transaction have been made. The unaudited pro forma condensed
financial statements should be read together with the Companys
historical consolidated financial statements and related notes
included in the Companys Quarterly Report on Form 10-Q for the
nine months ended September 30, 2016, filed with the Securities
and Exchange Commission (the SEC) on November 7, 2016, and the
Companys Annual Report on Form 10-K for the year ended December
31, 2015, filed with the SEC on February 25, 2016.
REXFORD INDUSTRIAL REALTY, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
As of September 30, 2016
(Unaudited and in thousands except share and per share data)
Rexford Industrial Realty, Inc. (A)
Property Disposition- Pro Forma Adjustments (B)
Pro Forma Rexford Industrial Realty, Inc.
ASSETS
Investments in real estate, net
$
1,371,268
$
(11,601
)
$
1,359,667
Cash and cash equivalents
55,263
16,251
71,514
Note receivable
5,817
5,817
Rents and other receivables, net
2,633
2,633
Deferred rent receivable, net
10,913
(66
)
10,847
Deferred leasing costs, net
8,064
(53
)
8,011
Deferred loan costs, net
Acquired lease intangible assets, net
38,093
38,142
Acquired indefinite-lived intangible
5,215
5,215
Other assets
5,522
5,522
Acquisition related deposits
Investment in unconsolidated real estate entities
Total Assets
1,504,184
4,580
1,508,764
LIABILITIES EQUITY
Liabilities
Notes payable
500,428
500,428
Interest rate swap liability
5,938
5,938
Accounts payable, accrued expenses and other
liabilities
18,433
(37
)
18,396
Dividends payable
9,214
9,214
Acquired lease intangible liabilities, net
5,722
5,722
Tenant security deposits
14,946
(195
)
14,751
Prepaid rents
3,945
(68
)
3,877
Total Liabilities
558,626
(300
)
558,326
Equity
Rexford Industrial Realty, Inc. stockholders equity
Preferred stock, $0.01 par value, 10,000,000 shares
authorized; 5.875% series A cumulative redeemable
preferred stock, liquidation preference $25.00 per
share, 3,600,000 shares outstanding at September 30,
2016
86,664
86,664
Common Stock, $0.01 par value 490,000,000 shares
authorized and 66,048,341 shares outstanding at
September 30, 2016
Additional paid in capital
898,354
898,354
Cumulative distributions in excess of earnings
(56,651
)
4,631
(52,020
)
Accumulated other comprehensive loss
(5,764
)
(5,764
)
Total stockholders equity
923,261
4,631
927,892
Noncontrolling interests
22,297
22,448
Total Equity
945,558
4,782
950,340
Total Liabilities and Equity
$
1,504,184
$
4,482
$
1,508,666
REXFORD INDUSTRIAL REALTY, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2016
(Unaudited and in thousands except share and per share data)
Rexford Industrial Realty, Inc. (AA)
Property Disposition- Pro Forma Adjustments (BB)
Pro Forma Rexford Industrial Realty, Inc.
RENTAL REVENUES
Rental income
$
77,903
$
(937
)
$
76,966
Tenant reimbursements
12,144
(30
)
12,114
Other income
(15
)
TOTAL RENTAL REVENUES
90,811
(982
)
89,829
Management, leasing and development services
Interest income
TOTAL REVENUES
91,415
(982
)
90,433
OPERATING EXPENSES
Property expenses
24,480
(371
)
24,109
General and administrative
13,190
13,190
Depreciation and amortization
37,165
(294
)
36,871
TOTAL OPERATING EXPENSES
74,835
(665
)
74,170
OTHER EXPENSE
Acquisition expenses
1,490
1,490
Interest expense
10,774
10,774
TOTAL OTHER EXPENSE
12,264
12,264
TOTAL EXPENSES
87,099
(665
)
86,434
Equity in income from unconsolidated real estate
entities
1,451
1,451
Gains on sale of real estate
11,563
11,563
NET INCOME
17,330
(317
)
17,013
Less: net income attributable to noncontrolling
interest
(533
)
(523
)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY,
INC.
16,797
(307
)
16,490
Less: preferred stock dividends
(661
)
(661
)
Less: earnings allocated to participating securities
(223
)
(223
)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
15,913
$
(307
)
$
15,606
Net income available to common stockholders per share –
basic and diluted
$
0.26
$
0.25
Weighted average shares of common stock outstanding –
basic
61,694,835
61,694,835
Weighted average shares of common stock outstanding –
diluted
61,919,976
61,919,976
REXFORD INDUSTRIAL REALTY, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2015
(Unaudited and in thousands except share and per share data)
Rexford Industrial Realty, Inc. (CC)
Property Disposition- Pro Forma Adjustments (DD)
Pro Forma Rexford Industrial Realty, Inc.
RENTAL REVENUES
Rental revenues
$
81,114
$
(1,096
)
$
80,018
Tenant reimbursements
10,479
(27
)
10,452
Other income
1,013
(14
)
TOTAL RENTAL REVENUES
92,606
(1,137
)
91,469
Management, leasing and development services
Interest income
TOTAL REVENUES
93,900
(1,137
)
92,763
OPERATING EXPENSES
Property expenses
25,000
(440
)
24,560
General and administrative
15,016
15,016
Depreciation and amortization
41,837
(488
)
41,349
TOTAL OPERATING EXPENSES
81,853
(928
)
80,925
OTHER EXPENSE
Acquisition expenses
2,136
2,136
Interest expense
8,453
8,453
TOTAL OTHER EXPENSE
10,589
10,589
TOTAL EXPENSES
92,442
(928
)
91,514
Equity in income from unconsolidated real estate
entities
Gain from early repayment of note receivable
Loss on extinguishment of debt
(182
)
(182
)
NET INCOME
1,950
(209
)
1,741
Net income attributable to noncontrolling interests
(76
)
(68
)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY,
INC.
1,874
(201
)
1,673
Less: earnings allocated to participating securities
(223
)
(223
)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
1,651
$
(201
)
$
1,450
Net income attributable to common stockholders per
share – basic and diluted
$
0.03
$
0.03
Weighted average shares of common stock outstanding –
basic and diluted
54,024,923
54,024,923
REXFORD INDUSTRIAL REALTY, INC.
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1.
Balance sheet adjustments
(A)
Represents the unaudited historical balance sheet of the
Company as of September 30, 2016. See the historical
consolidated financial statements and notes thereto
included in the Companys Quarterly Report on Form 10-Q for
the quarter ended September 30, 2016, filed with the SEC on
November 7, 2016.
(B)
Adjustments reflect the net sale proceeds received from the
sale of the Property and the elimination of the related
account balances as if the sale was consummated as of
September 30, 2016. Cumulative distributions in excess of
earnings and Noncontrolling interests have been increased
to reflect the receipt of net sale proceeds and removal of
assets and liabilities related to the sale, as follows (in
thousands):
Contract sale price
$
17,000
Closing credits and transaction costs
(749
)
Net proceeds from sale
$
16,251
Net book value of the Property
(11,469
)
Gain on sale
$
4,782
2.
Income statement adjustments
(AA) Represents the unaudited historical consolidated statement
of operations of the Company for the nine months ended September
30, 2016. See the historical consolidated financial statements
and notes thereto included in the Companys Quarterly Report on
Form 10-Q for the quarter ended September 30, 2016, filed with
the SEC on November 7, 2016.
(BB) The pro forma adjustments reflect the results of operations
for the Property for the nine months ended September 30, 2016.
(CC) Represents the audited historical consolidated statement of
operations of the Company for the year ended December 31, 2015.
See the historical consolidated financial statements and notes
thereto included in the Companys Annual Report on Form 10-K for
the year ended December 31, 2015, filed with the SEC on February
25, 2016.
(DD) The pro forma adjustments reflect the results of operations
for the Property for the year ended December 31, 2015.


About REXFORD INDUSTRIAL REALTY, INC. (NYSE:REXR)

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. The Company’s consolidated portfolio consisted of approximately 119 properties with over 12.0 million rentable square feet. The Company also owns interest in a joint venture (the JV) that indirectly owns one property with approximately 0.5 million square feet, which it also manages. The Company manages an additional 19 properties with approximately 1.2 million rentable square feet. The Company’s properties are concentrated in various industries, such as wholesale and retail, light manufacturing, industrial equipment and components, warehousing and storage, food and beverage, business services, construction, automotive, paper and printing, pharmaceuticals and healthcare.

REXFORD INDUSTRIAL REALTY, INC. (NYSE:REXR) Recent Trading Information

REXFORD INDUSTRIAL REALTY, INC. (NYSE:REXR) closed its last trading session up +0.22 at 22.45 with 287,099 shares trading hands.