value-driven industrial property investment & ... exclusively focused on southern california...

Download Value-Driven Industrial Property Investment & ... Exclusively focused on Southern California industrial

Post on 31-May-2020

0 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • Value-Driven Industrial Property Investment & Management Infill Southern California

    June 2014

  • This page intentionally left blank

  • 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. 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, 2013, 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.

    3

  • The Rexford Mission

    4

    SAN BERNARDINO COUNTY LOS ANGELES COUNTYVENTURA COUNTY

    RIVERSIDE COUNTY

    Focused exclusively on generating superior risk-adjusted returns through value-driven industrial property investments located in prime, Southern California infill markets demonstrating favorable long- term tenant demand fundamentals, by capitalizing upon Rexford’s ability to source a volume of high- quality, accretive investment opportunities and our ability to develop and retain high quality employees.

    Rexford Property

  • “Pure-Play” Southern California Industrial Expert

    The Rexford Story & Opportunity

    Experienced Management Team with Vertically-Integrated Platform

    High Quality Properties Located in Superior Infill Locations that Command Premium Rents

    Portfolio Well-Positioned to Capitalize on Increasing Occupancy and Rising Rents

    Significant External Growth Prospects Driven by Proprietary Deal Sourcing Methods

    Growth-Oriented Capital Structure

    5

  • Our Expertise Focused on Southern California

    6

    Name / Position Biography

    Howard Schwimmer Co-Chief Executive

    Officer

     Exclusively focused on Southern California industrial real estate for 30 years with expertise in property acquisitions, development, value-add repositioning, management, sales and leasing

     12 years of experience at Rexford; co-founded Rexford in 2001  Successful track record of acquiring, repositioning, developing, leasing, selling and adding value to

    more than 30 million square feet of industrial property in infill Southern California  Prior to co-founding Rexford, Executive Vice President and Broker of Record for DAUM

    Commercial, California’s oldest industrial real estate brokerage company

    Michael Frankel Co-Chief Executive

    Officer

     Over 27 years of experience focused on Southern California real estate, private equity investing, merger and acquisition advisory, and senior management operating roles

     10 years of experience co-managing Rexford  Successful track record leading Rexford platform growth to over 7 million square feet under

    management  Previously responsible for investments at C3, a private equity investment partnership with Comcast

    Corporation and manager with LEK Consulting, providing strategic advisory to leading investment institutions

    Adeel Khan Chief Financial Officer

     Previously served as Vice President, Controller at MPG Office Trust (NYSE: MPG), at the time the largest owner of class-A office buildings in downtown Los Angeles

     14 years of real estate experience and 16 years of public company finance experience including with the Walt Disney Company and Arthur Andersen LLP

    Richard Ziman Chairman

     Over 40 years of Southern California industrial real estate experience as an investor  12 years of experience at Rexford; co-founded Rexford in 2001  Founder / Chairman / CEO of Arden Realty, Inc. (NYSE: ARI) which he took public in 1996 and then

    expanded the portfolio from 4 million square feet to approximately 18.5 million square feet at the time of its sale in 2006

     Responsible for ARI’s investment strategy focused on office properties in infill Southern California Markets

  • Vertically-Integrated Team and Platform

    Expert in key disciplines of industrial property investment and management

    Name Title Years of Real Estate Experience

    Richard Ziman Chairman 40

    Howard Schwimmer Co-CEO 30

    Michael Frankel Co-CEO 10

    Adeel Khan CFO 11

    Patrick Schlehuber Director of Acquisitions 9

    Shannon Lewis

    Director of Leasing and Asset Mgmt 21

    Bruce Herbkersman

    Director of Construction & Development 20

    Michael Levine

    Construction Project Manager 38

    Victor Ramirez Controller 16

    PLUS established teams expert in acquisitions, underwriting, research, construction, finance, asset

    and property management

    Substantial public company experience and value-add industrial property know-how

    7

    Research &

    Originations

    Acquisitions &

    Due Diligence

    Accounting &

    Finance

    Construction &

    Redevelopment

    Leasing &

    Marketing

    Financing &

    Capital Markets

    Asset & Property

    Management

  • (1) Cash NOI and FFO are non-GAAP financial measures. For a reconciliation of these measures to net income, see the appendix. (2) FFO growth is demonstrated using funds from operations available to common shareholders and unit holders. (3) Pro-forma for disclosed and retained 2014 acquisitions as of May 30, 2014.

    Recent Performance Highlights

     Net absorption of 40,800 SF in 1Q14 and 454,000 SF in 2013 (7.3% of portfolio SF)

     Portfolio 91.1% leased as of 1Q14

     Cash NOI growth of 13.4% and FFO (2) growth of 13.6% from 4Q13 to 1Q14

    Positive Absorption and NOI Growth (1) Acquisition Activity Accelerates (3)

    Balance Sheet Supports External GrowthTrend of Strong Leasing Spreads

     Since our IPO, we acquired 17 properties for $160 million (1.7 million SF) expanding the portfolio 30% in 10 months

     2014 YTD acquired 8 properties totaling 748,000 SF for $76.0 million

     Cash and GAAP spreads increased 3.6% and 11.5% from 4Q13 to 1Q14

     Cash and GAAP spreads increased 3.5% and 12.9% from 3Q13 to 4Q13

     Low leverage with net debt/market cap of 35.2%

     Credit facility provides approximately $277 million of current buying capacity

    Strong operating performance and external growth drive financial results

    8

  • Growth Since IPO Last Year (1) (2) (3) (4)

    9

    5,668 SF 6,500 SF 6,712 SF

    $7,974  $8,326  $9,047 

     ‐

     1,000

     2,000

     3,000

     4,000

     5,000

     6,000

     7,000

     8,000

     9,000

     10,000

    3Q13 (1) 4Q13 1Q14

    SQFT GAAP NOI

    (1) As Rexford’s IPO consummated during the third quarter on July 24, 2013, the full third quarter GAAP NOI and FFO per share data have been quarterized by extrapolating upon financial performance from July 24, 2013 to September 30, 2013.

    (2) Square footage and GAAP NOI are in thousands. FFO is per weighted average shares outstanding. (3) FFO growth is demonstrated using funds from operations available to common shareholders and unit holders. (4) FFO is a non-GAAP financial measures. For a reconciliation of FFO to net income, see the appendix.

    FFO  $0.16/sh

    FFO  $0.17/sh

    FFO  $0.19/sh

  • 1.2%

    5.3%

    7.1%

    5.7% 6.6%

    7.9%

    (0.7%) (1.1%)

    0.2% 0.7% 0.6%

    1.1%

    2008 2009 2010 2011 2012 2013 Rexford Infill Southern California

    Executing on Leasing Strategies

    (1) DAUM Real Estate Services citing CoStar Property Database, CBRE and other sources as of 4Q13. Infill Southern California includes Los Angeles, Ventura, Orange, and San Diego counties a

Recommended

View more >