QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbols | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
PART I | |||||||||||
PART II. | |||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Tenant improvements | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Construction in progress | |||||||||||
Total real estate held for investment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Investments in real estate, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Rents and other receivables, net | |||||||||||
Deferred rent receivable, net | |||||||||||
Deferred leasing costs, net | |||||||||||
Deferred loan costs, net | |||||||||||
Acquired lease intangible assets, net | |||||||||||
Acquired indefinite-lived intangible | |||||||||||
Other assets | |||||||||||
Acquisition related deposits | |||||||||||
Assets associated with real estate held for sale | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES & EQUITY | |||||||||||
Liabilities | |||||||||||
Notes payable | $ | $ | |||||||||
Interest rate swap liability | |||||||||||
Accounts payable, accrued expenses and other liabilities | |||||||||||
Dividends and distributions payable | |||||||||||
Acquired lease intangible liabilities, net | |||||||||||
Tenant security deposits | |||||||||||
Prepaid rents | |||||||||||
Liabilities associated with real estate held for sale | |||||||||||
Total Liabilities | |||||||||||
Equity | |||||||||||
Rexford Industrial Realty, Inc. stockholders’ equity | |||||||||||
Preferred stock, $ | |||||||||||
Common Stock, $ | |||||||||||
Additional paid in capital | |||||||||||
Cumulative distributions in excess of earnings | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
REVENUES | ||||||||||||||
Rental income | $ | $ | ||||||||||||
Management, leasing and development services | ||||||||||||||
Interest income | ||||||||||||||
TOTAL REVENUES | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||
Property expenses | ||||||||||||||
General and administrative | ||||||||||||||
Depreciation and amortization | ||||||||||||||
TOTAL OPERATING EXPENSES | ||||||||||||||
OTHER EXPENSES | ||||||||||||||
Acquisition expenses | ||||||||||||||
Interest expense | ||||||||||||||
TOTAL EXPENSES | ||||||||||||||
Gains on sale of real estate | ||||||||||||||
NET INCOME | ||||||||||||||
Less: net income attributable to noncontrolling interests | ( | ( | ||||||||||||
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. | ||||||||||||||
Less: preferred stock dividends | ( | ( | ||||||||||||
Less: earnings allocated to participating securities | ( | ( | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | $ | ||||||||||||
Net income attributable to common stockholders per share - basic | $ | $ | ||||||||||||
Net income attributable to common stockholders per share - diluted | $ | $ | ||||||||||||
Weighted average shares of common stock outstanding - basic | ||||||||||||||
Weighted average shares of common stock outstanding - diluted |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss): cash flow hedge adjustment | ( | ||||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||
Comprehensive income attributable to Rexford Industrial Realty, Inc. | $ | $ |
Preferred Stock | Number of Shares | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock | — | ( | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of OP units to common stock | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends ($ | ( | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Preferred unit distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Preferred Stock | Number of Shares | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of OP Units | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares acquired to satisfy employee tax withholding requirements on vesting restricted stock | — | ( | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Conversion of OP units to common stock | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends ($ | ( | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Preferred unit distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends ($ | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of (below) above market lease intangibles, net | ( | ( | |||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of (premium) discount on notes payable, net | ( | ( | |||||||||
Gain on sale of real estate | ( | ||||||||||
Equity based compensation expense | |||||||||||
Straight-line rent | ( | ( | |||||||||
Amortization of payment for termination of cash flow swap | |||||||||||
Change in working capital components: | |||||||||||
Rents and other receivables | |||||||||||
Deferred leasing costs | ( | ( | |||||||||
Other assets | ( | ||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ||||||||||
Tenant security deposits | |||||||||||
Prepaid rents | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisition of investments in real estate | ( | ( | |||||||||
Capital expenditures | ( | ( | |||||||||
Payments for deposits on real estate acquisitions | ( | ( | |||||||||
Proceeds from sale of real estate | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of common stock, net | |||||||||||
Repayment of notes payable | ( | ( | |||||||||
Debt issuance costs | ( | ||||||||||
Dividends paid to preferred stockholders | ( | ( | |||||||||
Dividends paid to common stockholders | ( | ( | |||||||||
Distributions paid to common unitholders | ( | ( | |||||||||
Distributions paid to preferred unitholders | ( | ( | |||||||||
Repurchase of common shares to satisfy employee tax withholding requirements | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest (net of capitalized interest of $ | $ | $ | |||||||||
Supplemental disclosure of noncash transactions: | |||||||||||
Operating lease right-of-use assets obtained in exchange for lease liabilities | $ | $ | |||||||||
Issuance of operating partnership units in connection with acquisition of real estate | $ | $ | |||||||||
Issuance of | $ | $ | |||||||||
Assumption of debt in connection with acquisition of real estate including loan premium | $ | $ | |||||||||
Accrual for capital expenditures | $ | $ | |||||||||
Accrual of dividends and distributions | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | $ | $ | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Property | Submarket | Date of Acquisition | Rentable Square Feet | Number of Buildings | Contractual Purchase Price(1) (in thousands) | |||||||||||||||||||||||||||
15010 Don Julian Road | Los Angeles - San Gabriel Valley | $ | ||||||||||||||||||||||||||||||
5002-5018 Lindsay Court | San Bernardino - Inland Empire West | |||||||||||||||||||||||||||||||
514 East C Street | Los Angeles - South Bay | |||||||||||||||||||||||||||||||
17907-18001 Figueroa Street | Los Angeles - South Bay | |||||||||||||||||||||||||||||||
7817 Woodley Avenue(2) | Los Angeles - San Fernando Valley | |||||||||||||||||||||||||||||||
8888-8892 Balboa Avenue | San Diego - Central | |||||||||||||||||||||||||||||||
9920-10020 Pioneer Boulevard | Los Angeles - Mid-Counties | |||||||||||||||||||||||||||||||
2553 Garfield Avenue | Los Angeles - Central | |||||||||||||||||||||||||||||||
6655 East 26th Street | Los Angeles - Central | |||||||||||||||||||||||||||||||
560 Main Street | Orange County - North | |||||||||||||||||||||||||||||||
4225 Etiwanda Avenue | San Bernardino - Inland Empire West | |||||||||||||||||||||||||||||||
Total 2021 Wholly-Owned Property Acquisitions | $ |
2021 Acquisitions | ||||||||
Assets: | ||||||||
Land | $ | |||||||
Buildings and improvements | ||||||||
Tenant improvements | ||||||||
Acquired lease intangible assets(1) | ||||||||
Other acquired assets(2) | ||||||||
Total assets acquired | ||||||||
Liabilities: | ||||||||
Acquired lease intangible liabilities(3) | ||||||||
Notes payable(4) | ||||||||
Other assumed liabilities(2) | ||||||||
Total liabilities assumed | ||||||||
Net assets acquired | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Acquired Lease Intangible Assets: | |||||||||||
In-place lease intangibles | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
In-place lease intangibles, net | $ | $ | |||||||||
Above-market tenant leases | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Above-market tenant leases, net | $ | $ | |||||||||
Acquired lease intangible assets, net | $ | $ | |||||||||
Acquired Lease Intangible Liabilities: | |||||||||||
Below-market tenant leases | $ | ( | $ | ( | |||||||
Accumulated accretion | |||||||||||
Below-market tenant leases, net | $ | ( | $ | ( | |||||||
Acquired lease intangible liabilities, net | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
In-place lease intangibles(1) | $ | $ | |||||||||
Net below-market tenant leases(2) | $ | ( | $ | ( |
March 31, 2021 | December 31, 2020 | Margin Above LIBOR | Interest Rate(1) | Contractual Maturity Date | ||||||||||||||||||||||||||||
Unsecured and Secured Debt | ||||||||||||||||||||||||||||||||
Unsecured Debt: | ||||||||||||||||||||||||||||||||
Revolving Credit Facility | $ | $ | % | (2) | % | (3) | (4) | |||||||||||||||||||||||||
$225M Term Loan Facility | % | (2) | % | (5) | ||||||||||||||||||||||||||||
$150M Term Loan Facility | % | (2) | % | (5) | ||||||||||||||||||||||||||||
$100M Notes | n/a | % | ||||||||||||||||||||||||||||||
$125M Notes | n/a | % | ||||||||||||||||||||||||||||||
$25M Series 2019A Notes | n/a | % | ||||||||||||||||||||||||||||||
$400M Senior Notes | n/a | % | ||||||||||||||||||||||||||||||
$75M Series 2019B Notes | n/a | % | ||||||||||||||||||||||||||||||
Total Unsecured Debt | $ | $ | ||||||||||||||||||||||||||||||
Secured Debt: | ||||||||||||||||||||||||||||||||
2601-2641 Manhattan Beach Boulevard(6) | $ | $ | n/a | % | ||||||||||||||||||||||||||||
$60M Term Loan(7) | % | % | (7) | |||||||||||||||||||||||||||||
960-970 Knox Street(6)(8) | n/a | % | ||||||||||||||||||||||||||||||
7612-7642 Woodwind Drive(6) | n/a | % | ||||||||||||||||||||||||||||||
11600 Los Nietos Road(6) | n/a | % | ||||||||||||||||||||||||||||||
5160 Richton Street(6) | n/a | % | ||||||||||||||||||||||||||||||
22895 Eastpark Drive(6) | n/a | % | ||||||||||||||||||||||||||||||
701-751 Kingshill Place(9) | n/a | % | ||||||||||||||||||||||||||||||
13943-13955 Balboa Boulevard(6) | n/a | % | ||||||||||||||||||||||||||||||
2205 126th Street(10) | n/a | % | ||||||||||||||||||||||||||||||
2410-2420 Santa Fe Avenue(10) | n/a | % | ||||||||||||||||||||||||||||||
11832-11954 La Cienega Boulevard(6) | n/a | % | ||||||||||||||||||||||||||||||
Gilbert/La Palma(6) | n/a | % | ||||||||||||||||||||||||||||||
7817 Woodley Avenue(6) | n/a | % | ||||||||||||||||||||||||||||||
Total Secured Debt | $ | $ | ||||||||||||||||||||||||||||||
Total Unsecured and Secured Debt | $ | $ | ||||||||||||||||||||||||||||||
Less: Unamortized premium/discount and debt issuance costs(11) | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ |
April 1, 2021 - December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Twelve Months Ended March 31, | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended March 31, | |||||||||||
Lease Cost (in thousands) | 2021 | 2020 | |||||||||
Operating lease cost(1) | $ | $ | |||||||||
Variable lease cost(1) | |||||||||||
Total lease cost | $ | $ |
Three Months Ended March 31, | |||||||||||
Other Information (in thousands) | 2021 | 2020 | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ |
Lease Term and Discount Rate | March 31, 2021 | December 31, 2020 | |||||||||
Weighted-average remaining lease term | |||||||||||
Weighted-average discount rate(1) | % | % |
April 1, 2021 - December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total undiscounted lease payments | $ | ||||
Less imputed interest | ( | ||||
Total lease liabilities | $ |
Current Notional Value(1) | Fair Value of Interest Rate Derivative Liabilities(2) | |||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument | Effective Date | Maturity Date | LIBOR Interest Strike Rate | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Interest Rate Swap | % | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||
Interest Rate Swap | % | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||
Interest Rate Swap | % | $ | $ | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Interest Rate Swaps in Cash Flow Hedging Relationships: | |||||||||||
Amount of gain (loss) recognized in AOCI on derivatives | $ | $ | ( | ||||||||
Amount of loss reclassified from AOCI into earnings under “Interest expense” | $ | ( | $ | ( | |||||||
Total interest expense presented in the Consolidated Statement of Operations in which the effects of cash flow hedges are recorded (line item “Interest expense”) | $ | $ |
Fair Value Measurement Using | ||||||||||||||||||||||||||
Total Fair Value | Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||
Interest Rate Swap Asset | $ | $ | $ | $ | ||||||||||||||||||||||
Interest Rate Swap Liability | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Interest Rate Swap Asset | $ | $ | $ | $ | ||||||||||||||||||||||
Interest Rate Swap Liability | $ | ( | $ | $ | ( | $ |
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||
Liabilities | Total Fair Value | Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Value | |||||||||||||||||||||||||||
Notes Payable at: | ||||||||||||||||||||||||||||||||
March 31, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2020 | $ | $ | $ | $ | $ |
Property | Submarket | Date of Disposition | Rentable Square Feet | Contractual Sales Price(1) (in thousands) | Gain Recorded (in thousands) | |||||||||||||||||||||||||||
14723-14825.25 Oxnard Street | Greater San Fernando Valley | $ | $ | |||||||||||||||||||||||||||||
6760 Central Avenue, Unit B | Inland Empire East | |||||||||||||||||||||||||||||||
Total | $ | $ |
December 31, 2020 | ||||||||
Land | $ | |||||||
Building and improvements | ||||||||
Tenant improvements | ||||||||
Real estate held for sale | ||||||||
Accumulated depreciation | ( | |||||||
Real estate held for sale, net | ||||||||
Other assets associated with real estate held for sale | ||||||||
Total assets associated with real estate held for sale, net | $ | |||||||
Tenant security deposits | $ | |||||||
Other liabilities associated with real estate held for sale | ||||||||
Total liabilities associated with real estate held for sale | $ |
Unvested Awards | |||||||||||||||||||||||
Number of Shares of Restricted Common Stock | Weighted-Average Grant Date Fair Value per Share | Number of LTIP Units | Weighted-Average Grant Date Fair Value per Unit | ||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Vested(1) | ( | ( | |||||||||||||||||||||
Balance at March 31, 2021 | $ | $ |
Unvested Awards | |||||||||||||||||
Restricted Common Stock | LTIP Units | Performance Units(1) | |||||||||||||||
April 1, 2021 - December 31, 2021 | |||||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Total |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Expensed share-based compensation(1) | $ | $ | |||||||||
Capitalized share-based compensation(2) | |||||||||||
Total share-based compensation | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Accumulated other comprehensive loss - beginning balance | $ | ( | $ | ( | ||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense | ||||||||||||||
Net current period other comprehensive income (loss) | ( | |||||||||||||
Less other comprehensive income (loss) attributable to noncontrolling interests | ( | |||||||||||||
Other comprehensive income (loss) attributable to common stockholders | ( | |||||||||||||
Accumulated other comprehensive loss - ending balance | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Numerator: | |||||||||||
Net income | $ | $ | |||||||||
Less: Preferred stock dividends | ( | ( | |||||||||
Less: Net income attributable to noncontrolling interests | ( | ( | |||||||||
Less: Net income attributable to participating securities | ( | ( | |||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average shares of common stock outstanding – basic | |||||||||||
Effect of dilutive securities | |||||||||||
Weighted average shares of common stock outstanding – diluted | |||||||||||
Earnings per share — Basic | |||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Earnings per share — Diluted | |||||||||||
Net income attributable to common stockholders | $ | $ |
Property | Submarket | Date of Acquisition | Rentable Square Feet | Number of Buildings | Contractual Purchase Price (in thousands) | |||||||||||||||||||||||||||
12118 Bloomfield Avenue (1) | Los Angeles - Mid-Counties | 4/14/2021 | $ | |||||||||||||||||||||||||||||
256 East Alondra Boulevard (2) | Los Angeles - South Bay | 4/15/2021 | ||||||||||||||||||||||||||||||
19007 S. Reyes Avenue (3) | Los Angeles - South Bay | 4/23/2021 | ||||||||||||||||||||||||||||||
Total | $ |
Security | Amount per Share/Unit | Record Date | Payment Date | |||||||||||||||||
Common stock | $ | |||||||||||||||||||
OP Units | $ | |||||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
$ | ||||||||||||||||||||
$ |
Estimated Construction Period(1) | ||||||||||||||||||||||||||||||||||||||
Property (Submarket) | Market | Total Property Rentable Square Feet(2) | Repositioning/ Lease-up Rentable Square Feet(2) | Start | Completion | Total Property Leased % at 3/31/21 | ||||||||||||||||||||||||||||||||
Current Repositioning: | ||||||||||||||||||||||||||||||||||||||
12821 Knott Street (West OC)(3) | OC | 165,171 | 165,171 | 1Q-2019 | 3Q-2021 | —% | ||||||||||||||||||||||||||||||||
Rancho Pacifica Buildings 1 & 6 (South Bay)(4) | LA | 488,114 | 488,114 | 4Q-2020 | 3Q-2021 | 87% | ||||||||||||||||||||||||||||||||
12133 Greenstone Avenue (Mid-Counties)(5) | LA | 12,586 | 12,586 | 1Q-2021 | 4Q-2021 | —% | ||||||||||||||||||||||||||||||||
16221 Arthur Street (Mid-Counties)(6) | LA | 61,372 | 61,372 | 1Q-2021 | 2Q-2021 | 100% | ||||||||||||||||||||||||||||||||
8745-8775 Production Avenue (Central SD) | SD | 46,820 | 26,200 | 1Q-2021 | 2Q-2021 | 47% | ||||||||||||||||||||||||||||||||
Total Current Repositioning | 774,063 | 753,443 | ||||||||||||||||||||||||||||||||||||
Future Repositioning: | ||||||||||||||||||||||||||||||||||||||
11529-11547 Tuxford Street. (San Fernando Valley) | LA | 29,730 | 29,730 | 2Q-2021 | 4Q-2021 | 92% | ||||||||||||||||||||||||||||||||
11600 Los Nietos Road (Mid-Counties) | LA | 103,982 | 103,982 | 2Q-2021 | 1Q-2022 | 100% | ||||||||||||||||||||||||||||||||
15650-15700 Avalon Boulevard (South Bay)(7) | LA | 98,259 | 98,259 | 2Q-2021 | 3Q-2021 | 92% | ||||||||||||||||||||||||||||||||
9920-10020 Pioneer Blvd (Mid-Counties) | LA | 157,669 | 157,669 | 3Q-2021 | 3Q-2022 | 5% | ||||||||||||||||||||||||||||||||
3441 MacArthur Boulevard (OC Airport) | OC | 122,060 | 122,060 | 4Q-2021 | 2Q-2022 | 100% | ||||||||||||||||||||||||||||||||
8985 Crestmar Point (Central SD) | LA | 56,550 | 56,550 | 4Q-2021 | 2Q-2022 | 87% | ||||||||||||||||||||||||||||||||
Total Future Repositioning | 568,250 | 568,250 | ||||||||||||||||||||||||||||||||||||
Lease-up: | ||||||||||||||||||||||||||||||||||||||
The Merge (Inland Empire West) | SB | 333,544 | 333,544 | 2Q-2019 | 4Q-2020 | 75% |
Estimated Construction Period(1) | ||||||||||||||||||||||||||||||||
Property (Submarket) | Market | Estimated Redevelopment Rentable Square Feet(8) | Start | Completion | Total Property Leased % at 3/31/21 | |||||||||||||||||||||||||||
Current Redevelopment: | ||||||||||||||||||||||||||||||||
Avenue Paine (San Fernando Valley) | LA | 111,024 | 1Q-2021 | 4Q-2021 | —% | |||||||||||||||||||||||||||
851 Lawrence Drive (Ventura) | VC | 90,772 | 4Q-2019 | 2Q-2021 | —% | |||||||||||||||||||||||||||
Total Current Redevelopment | 201,796 | |||||||||||||||||||||||||||||||
Future Redevelopment: | ||||||||||||||||||||||||||||||||
415 Motor Avenue (San Gabriel Valley) | LA | 94,315 | 2Q-2021 | 2Q-2022 | —% | |||||||||||||||||||||||||||
1055 Sandhill Avenue (South Bay) | LA | 127,853 | 2Q-2021 | 1Q-2023 | —% | |||||||||||||||||||||||||||
9615 Norwalk Boulevard (Mid-Counties)(9) | LA | 200,365 | 3Q-2021 | 4Q-2022 | 100% | |||||||||||||||||||||||||||
15601 Avalon Boulevard (South Bay)(10) | LA | 87,300 | 3Q-2021 | 4Q-2022 | 100% | |||||||||||||||||||||||||||
4416 Azusa Canyon Road (San Gabriel Valley)(11) | LA | 129,835 | 4Q-2021 | 3Q-2022 | —% | |||||||||||||||||||||||||||
12752-12822 Monarch Street (West OC)(12) | OC | 275,695 | 4Q-2021 | 4Q-2022 | 100% | |||||||||||||||||||||||||||
900 East Ball Road (North OC) | OC | 105,100 | 4Q-2021 | 4Q-2022 | 100% | |||||||||||||||||||||||||||
15010 Don Julian Road (San Gabriel Valley) | LA | 219,242 | 1Q-2022 | 2Q-2023 | 100% | |||||||||||||||||||||||||||
8888-8892 Balboa Avenue (Central SD) | SD | 124,700 | 1Q-2022 | 4Q-2022 | 33% | |||||||||||||||||||||||||||
12772 San Fernando Road (San Fernando Valley) | LA | 146,746 | 3Q-2022 | 3Q-2023 | 52% | |||||||||||||||||||||||||||
Total Future Redevelopment | 1,511,151 |
2020 Stabilized(13) | Market | Stabilized Rentable Square Feet | Period Stabilized | Total Property Leased % at 3/31/21 | ||||||||||||||||||||||||||||
2455 Conejo Spectrum Street (Ventura) | VC | 98,218 | 1Q-2020 | 100% | ||||||||||||||||||||||||||||
635 8th Street (San Fernando Valley) | LA | 72,250 | 1Q-2020 | 100% | ||||||||||||||||||||||||||||
16121 Carmenita Road (Mid-Counties) | LA | 105,477 | 3Q-2020 | 100% | ||||||||||||||||||||||||||||
10015 Waples Court (Central SD) | SD | 106,412 | 3Q-2020 | 100% | ||||||||||||||||||||||||||||
1210 North Red Gum Street (North OC) | OC | 64,570 | 3Q-2020 | 100% | ||||||||||||||||||||||||||||
7110 E. Rosecrans Avenue - Unit B (South Bay) | LA | 37,417 | 3Q-2020 | 100% | ||||||||||||||||||||||||||||
29003 Avenue Sherman (San Fernando Valley) | LA | 68,123 | 4Q-2020 | 100% | ||||||||||||||||||||||||||||
727 Kingshill Place (South Bay) | LA | 46,005 | 4Q-2020 | 100% | ||||||||||||||||||||||||||||
Total 2020 Stabilized | 598,472 |
New Leases | ||||||||||||||||||||||||||||||||||||||
Quarter | Number of Leases | Rentable Square Feet | Weighted Average Lease Term (in years) | Effective Rent Per Square Foot(1) | GAAP Leasing Spreads(2)(4) | Cash Leasing Spreads(3)(4) | ||||||||||||||||||||||||||||||||
Q1-2021 | 52 | 909,694 | 5.2 | $ | 12.52 | 43.8 | % | 26.7 | % | |||||||||||||||||||||||||||||
Renewal Leases | Expired Leases | Retention %(7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter | Number of Leases | Rentable Square Feet | Weighted Average Lease Term (in years) | Effective Rent Per Square Foot(1) | GAAP Leasing Spreads(2)(5) | Cash Leasing Spreads(3)(5) | Number of Leases | Rentable Square Feet(6) | Rentable Square Feet | |||||||||||||||||||||||||||||||||||||||||||||||
Q1-2021 | 70 | 1,049,547 | 4.6 | $ | 12.93 | 48.5 | % | 35.4 | % | 120 | 1,781,667 | 79.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Year of Lease Expiration | Number of Leases Expiring | Total Rentable Square Feet(1) | Percentage of Total Owned Square Feet | Annualized Base Rent(2) | Percentage of Total Annualized Base Rent(3) | Annualized Base Rent per Square Foot(4) | ||||||||||||||||||||||||||||||||
Vacant(5) | — | 627,665 | 2.0 | % | $ | — | — | % | $ | — | ||||||||||||||||||||||||||||
Current Repositioning(6) | — | 729,706 | 2.3 | % | — | — | % | $ | — | |||||||||||||||||||||||||||||
MTM Tenants | 21 | 163,497 | 0.5 | % | 2,428 | 0.8 | % | $ | 14.85 | |||||||||||||||||||||||||||||
Remainder of 2021 | 274 | 3,602,125 | 11.2 | % | 36,221 | 11.3 | % | $ | 10.06 | |||||||||||||||||||||||||||||
2022 | 400 | 4,644,177 | 14.5 | % | 51,369 | 16.0 | % | $ | 11.06 | |||||||||||||||||||||||||||||
2023 | 341 | 4,481,064 | 14.0 | % | 50,926 | 15.9 | % | $ | 11.36 | |||||||||||||||||||||||||||||
2024 | 210 | 4,883,651 | 15.2 | % | 49,754 | 15.5 | % | $ | 10.19 | |||||||||||||||||||||||||||||
2025 | 118 | 3,823,586 | 11.9 | % | 38,131 | 11.9 | % | $ | 9.97 | |||||||||||||||||||||||||||||
2026 | 80 | 4,141,857 | 12.9 | % | 39,250 | 12.2 | % | $ | 9.48 | |||||||||||||||||||||||||||||
2027 | 14 | 934,640 | 2.9 | % | 8,807 | 2.7 | % | $ | 9.42 | |||||||||||||||||||||||||||||
2028 | 10 | 549,998 | 1.7 | % | 5,147 | 1.6 | % | $ | 9.36 | |||||||||||||||||||||||||||||
2029 | 9 | 550,549 | 1.7 | % | 6,894 | 2.1 | % | $ | 12.52 | |||||||||||||||||||||||||||||
2030 | 11 | 1,212,453 | 3.8 | % | 13,184 | 4.1 | % | $ | 10.87 | |||||||||||||||||||||||||||||
Thereafter | 20 | 1,742,853 | 5.4 | % | 18,992 | 5.9 | % | $ | 10.90 | |||||||||||||||||||||||||||||
Total Consolidated Portfolio | 1,508 | 32,087,821 | 100.0 | % | $ | 321,103 | 100.0 | % | $ | 10.45 |
Stabilized Same Properties Portfolio | Total Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Increase/(Decrease) | % | Three Months Ended March 31, | Increase/(Decrease) | % | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 77,348 | $ | 72,966 | $ | 4,382 | 6.0 | % | $ | 99,644 | $ | 77,490 | $ | 22,154 | 28.6 | % | ||||||||||||||||||||||||||||||||||
Management, leasing and development services | — | — | — | — | % | 105 | 93 | 12 | 12.9 | % | ||||||||||||||||||||||||||||||||||||||||
Interest income | — | — | — | — | % | 14 | 97 | (83) | (85.6) | % | ||||||||||||||||||||||||||||||||||||||||
TOTAL REVENUES | 77,348 | 72,966 | 4,382 | 6.0 | % | 99,763 | 77,680 | 22,083 | 28.4 | % | ||||||||||||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property expenses | 17,354 | 16,796 | 558 | 3.3 | % | 23,575 | 18,114 | 5,461 | 30.1 | % | ||||||||||||||||||||||||||||||||||||||||
General and administrative | — | — | — | — | % | 11,480 | 9,317 | 2,163 | 23.2 | % | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 24,630 | 26,127 | (1,497) | (5.7) | % | 35,144 | 27,523 | 7,621 | 27.7 | % | ||||||||||||||||||||||||||||||||||||||||
TOTAL OPERATING EXPENSES | 41,984 | 42,923 | (939) | (2.2) | % | 70,199 | 54,954 | 15,245 | 27.7 | % | ||||||||||||||||||||||||||||||||||||||||
OTHER EXPENSES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition expenses | — | — | — | — | % | 29 | 5 | 24 | 480.0 | % | ||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | % | 9,752 | 7,449 | 2,303 | 30.9 | % | ||||||||||||||||||||||||||||||||||||||||
TOTAL EXPENSES | 41,984 | 42,923 | (939) | (2.2) | % | 79,980 | 62,408 | 17,572 | 28.2 | % | ||||||||||||||||||||||||||||||||||||||||
Gains on sale of real estate | — | — | — | — | % | 10,860 | — | 10,860 | — | % | ||||||||||||||||||||||||||||||||||||||||
NET INCOME | $ | 35,364 | $ | 30,043 | $ | 5,321 | 17.7 | % | $ | 30,643 | $ | 15,272 | $ | 15,371 | 100.6 | % |
Stabilized Same Properties Portfolio | Total Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Increase/(Decrease) | % | Three Months Ended March 31, | Increase/(Decrease) | % | |||||||||||||||||||||||||||||||||||||||||||||
Category | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||||||||||||||
Rental revenue(1) | $ | 64,931 | $ | 61,505 | $ | 3,426 | 5.6 | % | $ | 82,853 | $ | 65,255 | $ | 17,598 | 27.0 | % | ||||||||||||||||||||||||||||||||||
Tenant reimbursements (2) | 12,316 | 11,255 | 1,061 | 9.4 | % | 16,644 | 11,993 | 4,651 | 38.8 | % | ||||||||||||||||||||||||||||||||||||||||
Other income(3) | 101 | 206 | (105) | (51.0) | % | 147 | 242 | (95) | (39.3) | % | ||||||||||||||||||||||||||||||||||||||||
Rental income | $ | 77,348 | $ | 72,966 | $ | 4,382 | 6.0 | % | $ | 99,644 | $ | 77,490 | $ | 22,154 | 28.6 | % |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | 30,643 | $ | 15,272 | |||||||
Add: | |||||||||||
Depreciation and amortization | 35,144 | 27,523 | |||||||||
Deduct: | |||||||||||
Gains on sale of real estate | 10,860 | — | |||||||||
Funds From Operations (FFO) | $ | 54,927 | $ | 42,795 | |||||||
Less: preferred stock dividends | (3,636) | (3,636) | |||||||||
Less: FFO attributable to noncontrolling interest(1) | (3,134) | (1,450) | |||||||||
Less: FFO attributable to participating securities(2) | (209) | (195) | |||||||||
FFO attributable to common stockholders | $ | 47,948 | $ | 37,514 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Rental income | $ | 99,644 | $ | 77,490 | |||||||
Property expenses | 23,575 | 18,114 | |||||||||
Net Operating Income | $ | 76,069 | $ | 59,376 | |||||||
Amortization of (below) above market lease intangibles, net | (2,712) | (2,402) | |||||||||
Straight line rental revenue adjustment | (4,199) | (1,672) | |||||||||
Cash Net Operating Income | $ | 69,158 | $ | 55,302 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | 30,643 | $ | 15,272 | |||||||
Add: | |||||||||||
General and administrative | 11,480 | 9,317 | |||||||||
Depreciation and amortization | 35,144 | 27,523 | |||||||||
Acquisition expenses | 29 | 5 | |||||||||
Interest expense | 9,752 | 7,449 | |||||||||
Deduct: | |||||||||||
Management, leasing and development services | 105 | 93 | |||||||||
Interest income | 14 | 97 | |||||||||
Gains on sale of real estate | 10,860 | — | |||||||||
Net Operating Income | $ | 76,069 | $ | 59,376 | |||||||
Amortization of (below) above market lease intangibles, net | (2,712) | (2,402) | |||||||||
Straight line rental revenue adjustment | (4,199) | (1,672) | |||||||||
Cash Net Operating Income | $ | 69,158 | $ | 55,302 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | 30,643 | $ | 15,272 | |||||||
Interest expense | 9,752 | 7,449 | |||||||||
Depreciation and amortization | 35,144 | 27,523 | |||||||||
Gains on sale of real estate | (10,860) | — | |||||||||
EBITDAre | $ | 64,679 | $ | 50,244 |
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Total(1) | Square Feet(2) | Per Square Foot(3) | ||||||||||||||||||
Non-Recurring Capital Expenditures(4) | $ | 16,584 | 14,760,489 | $ | 1.12 | |||||||||||||||
Recurring Capital Expenditures(5) | 2,541 | 31,727,816 | $ | 0.08 | ||||||||||||||||
Total Capital Expenditures | $ | 19,125 |
Security | Amount per Share/Unit | Record Date | Payment Date | |||||||||||||||||
Common stock | $ | 0.24 | June 30, 2021 | July 15, 2021 | ||||||||||||||||
OP Units | $ | 0.24 | June 30, 2021 | July 15, 2021 | ||||||||||||||||
5.875% Series A Cumulative Redeemable Preferred Stock | $ | 0.367188 | June 15, 2021 | June 30, 2021 | ||||||||||||||||
5.875% Series B Cumulative Redeemable Preferred Stock | $ | 0.367188 | June 15, 2021 | June 30, 2021 | ||||||||||||||||
5.625% Series C Cumulative Redeemable Preferred Stock | $ | 0.351563 | June 15, 2021 | June 30, 2021 | ||||||||||||||||
4.43937% Cumulative Redeemable Convertible Preferred Units | $ | 0.505085 | June 15, 2021 | June 30, 2021 | ||||||||||||||||
4.00% Cumulative Redeemable Convertible Preferred Units | $ | 0.45 | June 15, 2021 | June 30, 2021 |
Contractual Maturity Date | Margin Above LIBOR | Effective Interest Rate(1) | Principal Balance (in thousands)(2) | Maturity Date of Effective Swaps | |||||||||||||||||||||||||
Unsecured and Secured Debt: | |||||||||||||||||||||||||||||
Unsecured Debt: | |||||||||||||||||||||||||||||
Revolving Credit Facility(3) | 2/13/2024 | (4) | 0.850 | % | (5) | 0.961 | % | $ | — | ||||||||||||||||||||
$225M Term Loan Facility | 1/14/2023 | 1.100 | % | (5) | 2.474 | % | (6) | 225,000 | 1/14/2022 | ||||||||||||||||||||
$150M Term Loan Facility | 5/22/2025 | 1.550 | % | (5) | 4.313 | % | (7) | 150,000 | 11/22/2024 | ||||||||||||||||||||
$100M Senior Notes | 8/6/2025 | n/a | 4.290 | % | 100,000 | ||||||||||||||||||||||||
$125M Senior Notes | 7/13/2027 | n/a | 3.930 | % | 125,000 | ||||||||||||||||||||||||
$25M Series 2019A Senior Notes | 7/16/2029 | n/a | 3.880 | % | 25,000 | ||||||||||||||||||||||||
$400M Senior Notes | 12/1/2030 | n/a | 2.125 | % | 400,000 | ||||||||||||||||||||||||
$75M Series 2019B Senior Notes | 7/16/2034 | n/a | 4.030 | % | 75,000 | ||||||||||||||||||||||||
Total Unsecured Debt | $ | 1,100,000 | |||||||||||||||||||||||||||
Secured Debt: | |||||||||||||||||||||||||||||
2601-2641 Manhattan Beach Boulevard | 4/5/2023 | n/a | 4.080 | % | $ | 4,037 | |||||||||||||||||||||||
$60M Term Loan | 8/1/2023 | (8) | 1.700 | % | 1.811 | % | 58,499 | ||||||||||||||||||||||
960-970 Knox Street | 11/1/2023 | n/a | 5.000 | % | 2,466 | ||||||||||||||||||||||||
7612-7642 Woodwind Drive | 1/5/2024 | n/a | 5.240 | % | 3,874 | ||||||||||||||||||||||||
11600 Los Nietos Road | 5/1/2024 | n/a | 4.190 | % | 2,745 | ||||||||||||||||||||||||
5160 Richton Street | 11/15/2024 | n/a | 3.790 | % | 4,359 | ||||||||||||||||||||||||
22895 Eastpark Drive | 11/15/2024 | n/a | 4.330 | % | 2,733 | ||||||||||||||||||||||||
701-751 Kingshill Place | 1/5/2026 | n/a | 3.900 | % | 7,100 | ||||||||||||||||||||||||
13943-13955 Balboa Boulevard | 7/1/2027 | n/a | 3.930 | % | 15,577 | ||||||||||||||||||||||||
2205 126th Street | 12/1/2027 | n/a | 3.910 | % | 5,200 | ||||||||||||||||||||||||
2410-2420 Santa Fe Avenue | 1/1/2028 | n/a | 3.700 | % | 10,300 | ||||||||||||||||||||||||
11832-11954 La Cienega Boulevard | 7/1/2028 | n/a | 4.260 | % | 4,054 | ||||||||||||||||||||||||
Gilbert/La Palma | 3/1/2031 | n/a | 5.125 | % | 2,250 | ||||||||||||||||||||||||
7817 Woodley Avenue | 8/1/2039 | n/a | 4.140 | % | 3,221 | ||||||||||||||||||||||||
Total Secured Debt | $ | 126,415 | |||||||||||||||||||||||||||
Total Consolidated Debt | 3.064 | % | $ | 1,226,415 |
Average Term Remaining (in years) | Stated Interest Rate | Effective Interest Rate(1) | Principal Balance (in thousands)(2) | % of Total | ||||||||||||||||||||||||||||
Fixed vs. Variable: | ||||||||||||||||||||||||||||||||
Fixed | 6.6 | 3.13% | 3.13% | $ | 1,167,916 | 95% | ||||||||||||||||||||||||||
Variable | 2.3 | LIBOR + 1.70% | 1.81% | $ | 58,499 | 5% | ||||||||||||||||||||||||||
Secured vs. Unsecured: | ||||||||||||||||||||||||||||||||
Secured | 4.3 | 3.04% | $ | 126,415 | 10% | |||||||||||||||||||||||||||
Unsecured | 6.7 | 3.07% | $ | 1,100,000 | 90% |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Cash provided by operating activities | $ | 36,376 | $ | 46,493 | $ | (10,117) | ||||||||||||||
Cash used in investing activities | $ | (172,401) | $ | (63,138) | $ | (109,263) | ||||||||||||||
Cash provided by financing activities | $ | 82,482 | $ | 50,266 | $ | 32,216 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or approximate dollar value) of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 1, 2021 to January 31, 2021 | — | $ | — | N/A | N/A | |||||||||||||||||||||
February 1, 2021 to February 28, 2021(1) | 129 | $ | 50.56 | N/A | N/A | |||||||||||||||||||||
March 1, 2021 to March 31, 2021(1) | 28,017 | $ | 48.14 | N/A | N/A | |||||||||||||||||||||
28,146 | $ | 48.15 | N/A | N/A |
Exhibit | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
3.6 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
22.1* | ||||||||
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101.1* | The registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited) and (vi) the Notes to the Consolidated Financial Statements (unaudited) that have been detail tagged. | |||||||
104.1* | Cover Page Interactive Data File - The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
Rexford Industrial Realty, Inc. | ||||||||
April 26, 2021 | /s/ Michael S. Frankel | |||||||
Michael S. Frankel | ||||||||
Co-Chief Executive Officer (Principal Executive Officer) | ||||||||
April 26, 2021 | /s/ Howard Schwimmer | |||||||
Howard Schwimmer | ||||||||
Co-Chief Executive Officer (Principal Executive Officer) | ||||||||
April 26, 2021 | /s/ Laura E. Clark | |||||||
Laura E. Clark | ||||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Name of Subsidiary | Jurisdiction of Organization | |||||||
Rexford Industrial Realty, L.P. | Maryland |
April 26, 2021 | By: | /s/ Michael S. Frankel | |||||||||
Michael S. Frankel | |||||||||||
Co-Chief Executive Officer |
April 26, 2021 | By: | /s/ Howard Schwimmer | |||||||||
Howard Schwimmer | |||||||||||
Co-Chief Executive Officer |
April 26, 2021 | By: | /s/ Laura E. Clark | |||||||||
Laura E. Clark | |||||||||||
Chief Financial Officer |
/s/ Michael S. Frankel | |||||
Michael S. Frankel | |||||
Co-Chief Executive Officer | |||||
April 26, 2021 |
/s/ Howard Schwimmer | |||||
Howard Schwimmer | |||||
Co-Chief Executive Officer | |||||
April 26, 2021 |
/s/ Laura E. Clark | |||||
Laura E. Clark | |||||
Chief Financial Officer | |||||
April 26, 2021 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 30,643 | $ 15,272 |
Other comprehensive income (loss): cash flow hedge adjustment | 3,909 | (14,968) |
Comprehensive income | 34,552 | 304 |
Comprehensive income attributable to noncontrolling interests | (2,165) | (157) |
Comprehensive income attributable to Rexford Industrial Realty, Inc. | $ 32,387 | $ 147 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
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Common Stock, Dividends, Per Share, Declared | $ 0.240 | $ 0.215 | |
5.875% Series A Cumulative Redeemable Preferred Stock | |||
Preferred Stock, Dividends Per Share, Declared | $ 0.367188 | 0.367188 | |
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | |
5.875% Series B Cumulative Redeemable Preferred Stock | |||
Preferred Stock, Dividends Per Share, Declared | $ 0.367188 | 0.367188 | |
Preferred Stock, Dividend Rate, Percentage | 5.875% | 5.875% | |
5.625% Series C Cumulative Redeemable Preferred Stock | |||
Preferred Stock, Dividends Per Share, Declared | $ 0.351563 | $ 0.351563 | |
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | |
4.00% Cumulative Redeemable Convertible Preferred Units | |||
Preferred Stock, Dividend Rate, Percentage | 4.00% |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
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Class of Stock [Line Items] | ||
Interest costs capitalized | $ 732 | $ 882 |
4.00% Cumulative Redeemable Convertible Preferred Units | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 4.00% |
Organization |
3 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (“REIT”) focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013, and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we own, manage, lease, acquire and develop industrial real estate principally located in Southern California infill markets, and, from time to time, acquire or provide mortgage debt secured by industrial property. As of March 31, 2021, our consolidated portfolio consisted of 257 properties with approximately 32.1 million rentable square feet. In addition, we currently manage 20 properties with approximately 1.0 million rentable square feet. The terms “us,” “we,” “our,” and the “Company” as used in these financial statements refer to Rexford Industrial Realty, Inc. and its subsidiaries (including our Operating Partnership).
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Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation As of March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020, the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Under consolidation guidance, we have determined that our Operating Partnership is a variable interest entity because the holders of limited partnership interests do not have substantive kick-out rights or participating rights. Furthermore, we are the primary beneficiary of the Operating Partnership because we have the obligation to absorb losses and the right to receive benefits from the Operating Partnership and the exclusive power to direct the activities of the Operating Partnership. As of March 31, 2021 and December 31, 2020, the assets and liabilities of the Company and the Operating Partnership are substantially the same, as the Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The interim financial statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020 and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short-term maturity of these investments. Restricted Cash Restricted cash is comprised of escrow reserves that we are required to set aside for future costs as required by certain agreements with our lenders, and from time to time, includes cash proceeds from property sales that are being held by qualified intermediaries for purposes of facilitating tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”). Restricted cash balances are included with cash and cash equivalents balances as of the beginning and ending of each period presented in the consolidated statements of cash flows. The following table provides a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the three months ended March 31, 2021 and 2020 (in thousands):
Investments in Real Estate Acquisitions We account for acquisitions of properties under Accounting Standards Update (“ASU”) 2017-01, Business Combinations - Clarifying the Definition of a Business, which provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses and further revises the definition of a business. Our acquisitions of properties generally no longer meet the revised definition of a business and accordingly are accounted for as asset acquisitions. For asset acquisitions, we allocate the cost of the acquisition, which includes the purchase price and associated acquisition transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. These individual assets and liabilities typically include land, building and improvements, tenant improvements, intangible assets and liabilities related to above- and below-market leases, intangible assets related to in-place leases, and from time to time, assumed mortgage debt. As there is no measurement period concept for an asset acquisition, the allocated cost of the acquired assets is finalized in the period in which the acquisition occurs. We determine the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use. These Level 3 inputs include discount rates, capitalization rates, market rents and comparable sales data for similar properties. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. In determining the “as-if-vacant” value for the properties we acquired during the three months ended March 31, 2021, we used discount rates ranging from 5.0% to 7.0% and exit capitalization rates ranging from 4.0% to 6.0%. In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above- and below-market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the estimated costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. We consider estimated costs such as the value associated with leasing commissions, legal and other costs, as well as the estimated period of time necessary to lease such a property to its occupancy level at the time of its acquisition. In determining the fair value of acquisitions completed during the three months ended March 31, 2021, we used an estimated average lease-up period of six months. The difference between the fair value and the face value of debt assumed, if any, in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities are based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. In determining the fair value of debt assumed during the three months ended March 31, 2021, we used an estimated market interest rate of 3.75%. Capitalization of Costs We capitalize direct costs incurred in developing, renovating, rehabilitating and improving real estate assets as part of the investment basis. This includes certain general and administrative costs, including payroll, bonus and non-cash equity compensation of the personnel performing redevelopment, renovations and rehabilitation if such costs are identifiable to a specific activity to get the real estate asset ready for its intended use. During the redevelopment and construction periods of a project, we also capitalize interest, real estate taxes and insurance costs. We cease capitalization of costs upon substantial completion of the project, but no later than one year from cessation of major construction activity. If some portions of a project are substantially complete and ready for use and other portions have not yet reached that stage, we cease capitalizing costs on the completed portion of the project but continue to capitalize for the incomplete portion of the project. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. We capitalized interest costs of $0.7 million and $0.9 million during the three months ended March 31, 2021 and 2020, respectively. We capitalized real estate taxes and insurance costs aggregating $0.4 million and $0.3 million during the three months ended March 31, 2021 and 2020, respectively. We capitalized compensation costs for employees who provide construction services of $1.3 million and $1.0 million during the three months ended March 31, 2021 and 2020, respectively. Depreciation and Amortization Real estate, including land, building and land improvements, tenant improvements, furniture, fixtures and equipment and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regard to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. The values allocated to buildings, site improvements, in-place lease intangibles and tenant improvements are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 5-20 years for site improvements, and the shorter of the estimated useful life or respective lease term for in-place lease intangibles and tenant improvements. As discussed above in—Investments in Real Estate—Acquisitions, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an acquired lease intangible asset or liability and amortized to “rental income” over the remaining term of the related leases. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate that a change in the useful life has occurred, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. Assets Held for Sale We classify a property as held for sale when all of the criteria set forth in the Accounting Standards Codification (“ASC”) Topic 360: Property, Plant and Equipment (“ASC 360”) have been met. The criteria are as follows: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. At the time we classify a property as held for sale, we cease recording depreciation and amortization. A property classified as held for sale is measured and reported at the lower of its carrying amount or its estimated fair value less cost to sell. As of March 31, 2021 we did not have any properties classified as held for sale. As of December 31, 2020, our property located at 14723-14825.25 Oxnard Street was classified as held for sale. See Note 11. Impairment of Long-Lived Assets In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. To review real estate assets for recoverability, we consider current market conditions as well as our intent with respect to holding or disposing of the asset. The intent with regards to the underlying assets might change as market conditions and other factors change. Fair value is determined through various valuation techniques including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third-party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with respect to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties. There were no impairment charges recorded to the carrying value of our properties during the three months ended March 31, 2021 and 2020, respectively. Income Taxes We have elected to be taxed as a REIT under the Code commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal corporate income tax, including any applicable alternative minimum tax. In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities and flow-through entities such as partnerships is reportable in the income tax returns of the respective equity holders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2021 and 2020. We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2021, and December 31, 2020, we have not established a liability for uncertain tax positions. Derivative Instruments and Hedging Activities ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 7. Revenue Recognition Our primary sources of revenue are rental income, management, leasing and development services and gains on sale of real estate. Rental Income We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease, regardless of when payments are contractually due, when collectability is probable. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. Lease termination fees, which are included in rental income, are recognized when the related leases are canceled and we have no continuing obligation to provide services to such former tenants. Our lease agreements with tenants generally contain provisions that require tenants to reimburse us for certain property expenses. Estimated reimbursements from tenants for these property expenses, which include real estate taxes, insurance, common area maintenance and other recoverable operating expenses, are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and presented as a single line item “Rental income” in our consolidated statements of operations. We record revenues and expenses on a gross basis for lessor costs (which include real estate taxes) when these costs are reimbursed to us by our tenants. Conversely, we record revenues and expenses on a net basis for lessor costs when they are paid by our tenants directly to the taxing authorities on our behalf. COVID-19 Lease Concessions From March 2020 through December 2020, we received rent relief requests from a number of tenants claiming impacts from COVID-19, many of whom we believe may have made such rent relief requests in response to local California governmental moratoriums on commercial tenant evictions and provisions enabling commercial tenants to defer rent. In response to these requests, during 2020 we granted the following forms of rent relief to certain tenants: (a) application of security deposits to contractual base rent, (b) acceleration of future rent concessions in the original lease contract to cover contractual base rent and (c) deferral of contractual base rent with a typical deferral period of approximately one to two months and repayment that was generally scheduled to begin in the third or fourth quarter of 2020. Pursuant to a FASB issued question-and-answer document which addressed frequently asked questions about accounting for concessions related to the effects of the COVID-19 pandemic, we elected to forgo the evaluation of the enforceable rights and obligations of our lease contracts and elected to account for each rent relief agreement granting lease concessions in the form of accelerated future rent concessions and/or rent deferrals as a lease modification under ASC 842. As these lease concessions generally have not substantially changed the amount of consideration in the original lease contract (only the timing of lease payments has changed), these lease concessions have not had a material impact on our consolidated financial statements to date. During 2020, we deferred $4.6 million of contractual base rent payments which represented approximately 1.4% of our total consolidated rental income for 2020. As of March 31, 2021, we have collected approximately $3.6 million, or 93.2%, of the deferred payments due as of March 31, 2021. Additionally, as of March 31, 2021, we had $0.7 million of outstanding deferred payments, of which $0.5 million is due through the remainder of 2021. Management, leasing and development services We provide property management services and leasing services to related party and third-party property owners, the customer, in exchange for fees and commissions. Property management services include performing property inspections, monitoring repairs and maintenance, negotiating vendor contracts, maintaining tenant relations and providing financial and accounting oversight. For these services, we earn monthly management fees, which are based on a fixed percentage of each managed property’s monthly tenant cash receipts. We have determined that control over the services is passed to the customer simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to our customers. Leasing commissions are earned when we provide leasing services that result in an executed lease with a tenant. We have determined that control over the services is transferred to the customer upon execution of each lease agreement. We earn leasing commissions based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Gain or Loss on Sale of Real Estate We account for dispositions of real estate properties, which are considered nonfinancial assets, in accordance with ASC 610-20: Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets and recognize a gain or loss on sale of real estate upon transferring control of the nonfinancial asset to the purchaser, which is generally satisfied at the time of sale. If we were to conduct a partial sale of real estate by transferring a controlling interest in a nonfinancial asset, while retaining a noncontrolling ownership interest, we would measure any noncontrolling interest received or retained at fair value, and recognize a full gain or loss. If we receive consideration before transferring control of a nonfinancial asset, we recognize a contract liability. If we transfer control of the asset before consideration is received, we recognize a contract asset. When leases contain purchase options, we assess the probability that the tenant will execute the purchase option both at lease commencement and at the time the tenant communicates its intent to exercise the purchase option. If we determine the exercise of the purchase option is likely, we will account for the lease as a sales-type lease and derecognize the associated real estate assets on our balance sheet and record a gain or loss on sale of real estate. Valuation of Operating Lease Receivables We may be subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables related to our operating leases. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. On a quarterly basis, we perform an assessment of the collectability of operating lease receivables on a tenant-by-tenant basis, which includes reviewing the age and nature of our receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations and the status of negotiations of any disputes with the tenant. For all periods subsequent to March 2020, our assessment has specifically included the impact of the COVID-19 pandemic, including but not limited to tenants who have requested and/or received rent relief as further described above under “—COVID-19 Lease Concessions.” Any changes in the collectability assessment for an operating lease is recognized as an adjustment, which can be a reduction or increase, to rental income in the consolidated statements of operations. As a result of our quarterly collectability assessments, we recognized $0.5 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively, as a net reduction of rental income in the consolidated statements of operations. Deferred Leasing Costs We capitalize the incremental direct costs of originating a lease that would not have been incurred had the lease not been executed. As a result, deferred leasing costs will generally only include third-party broker commissions. Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a reduction from the carrying value of the debt liability. This offset against the debt liability is treated similarly to a debt discount, which effectively reduces the proceeds of a borrowing. For line of credit arrangements, we present debt issuance costs as an asset and amortize the cost over the term of the line of credit arrangement. See Note 5. Equity Based Compensation We account for equity-based compensation in accordance with ASC Topic 718: Compensation - Stock Compensation. Total compensation cost for all share-based awards is based on the estimated fair market value on the grant date. For share-based awards that vest based solely on a service condition, we recognize compensation cost on a straight-line basis over the total requisite service period for the entire award. For share-based awards that vest based on a market condition, we recognize compensation cost on a straight-line basis over the requisite service period of each separately vesting tranche. For share-based awards that vest based on a performance condition, we recognize compensation cost based on the number of awards that are expected to vest based on the probable outcome of the performance condition. Compensation cost for these awards will be adjusted to reflect the number of awards that ultimately vest. Forfeitures are recognized in the period in which they occur. See Note 12. Equity Offerings Underwriting commissions and offering costs incurred in connection with common stock offerings and our at-the-market equity offering program have been reflected as a reduction of additional paid-in capital. Underwriting commissions and offering costs related to our preferred stock issuances have been reflected as a direct reduction of the preferred stock balance. Sales of our common stock under forward equity sale agreements (as discussed in Note 12) meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. Earnings Per Share We calculate earnings per share (“EPS”) in accordance with ASC 260 - Earnings Per Share (“ASC 260”). Under ASC 260, unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the potential effect of any dilutive securities including shares issuable under forward equity sale agreements and unvested share-based awards under the treasury stock method. We include unvested shares of restricted stock and unvested LTIP units in the computation of diluted EPS by using the more dilutive of the two-class method or treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. See Note 13. Segment Reporting Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. Leases as a Lessee We determine if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) are included in “Other assets” and lease liabilities are included in “Accounts payable, accrued expenses and other liabilities” in our consolidated balance sheets. ROU assets represent our right to use, or control the use of, a specified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Because our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Additionally, for our operating leases, we do not separate non-lease components, such as common area maintenance, from associated lease components. See Note 6. Reference Rate Reform On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives in our financial statements consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
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Investments in Real Estate |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Real Estate | Investments in Real Estate Acquisitions The following table summarizes the wholly-owned industrial properties we acquired during the three months ended March 31, 2021:
(1)Represents the gross contractual purchase price before prorations, closing costs and other acquisition related costs. Each acquisition was funded with available cash on hand unless otherwise noted. (2)The acquisition of 7817 Woodley Avenue was funded through a combination of cash on hand and the assumption of $3.2 million of debt. This property is the remaining asset in the Van Nuys Airport Industrial Center Portfolio that we acquired in December 2020. The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands):
(1)Acquired lease intangible assets is comprised of $3.1 million of in-place lease intangibles with a weighted average amortization period of 3.6 years and $12 thousand of above-market lease intangibles with a weighted average amortization period of 1.7 years. (2)Includes other working capital assets acquired and liabilities assumed at the time of acquisition. (3)Represents below-market lease intangibles with a weighted average amortization period of 3.8 years. (4)In connection with the acquisition of one property, we assumed a mortgage loan from the seller. At the date of acquisition, the loan had a fair value of $3.3 million and a principal balance of $3.2 million.
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Acquired Lease Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Lease Intangibles | Acquired Lease Intangibles The following table summarizes our acquired lease intangible assets, including the value of in-place tenant leases and above-market tenant leases, and our acquired lease intangible liabilities which includes below-market tenant leases (in thousands):
The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2021 and 2020 (in thousands):
(1)The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. (2)The amortization of net below-market tenant leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented.
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Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | Notes Payable The following table summarizes the components and significant terms of our indebtedness as of March 31, 2021 and December 31, 2020 (dollars in thousands):
(1)Reflects the contractual interest rate under the terms of each loan as of March 31, 2021 and includes the effect of interest rate swaps that were effective as of March 31, 2021. See footnote (5) below. Excludes the effect of unamortized debt issuance costs and unamortized fair market value premiums and discounts. (2)The interest rates on these loans are comprised of LIBOR plus a LIBOR margin. The LIBOR margins will range from 0.725% to 1.400% per annum for the unsecured revolving credit facility, 0.90% to 1.75% per annum for the $225.0 million term loan facility and 1.40% to 2.35% per annum for the $150.0 million term loan facility, depending on our investment grade rating, which may change from time to time. (3)The unsecured revolving credit facility is subject to an applicable facility fee which is calculated as a percentage of the total lenders’ commitment amount, regardless of usage. The applicable facility fee will range from 0.125% to 0.300% per annum depending upon our investment grade rating. (4) Two additional six-month extensions are available at the borrower’s option, subject to certain terms and conditions. (5)As of March 31, 2021, interest on the $225.0 million term loan facility and $150 million term loan facility have been effectively fixed through the use of interest rate swaps. See Note 7 for details related to our interest rate swaps. (6)Fixed monthly payments of interest and principal until maturity as follows: 2601-2641 Manhattan Beach Boulevard ($23,138), 960-970 Knox Street ($17,538), 7612-7642 Woodwind Drive ($24,270), 11600 Los Nietos ($22,637), 5160 Richton Street ($23,270), 22895 Eastpark Drive ($15,396), 13943-13955 Balboa Boulevard ($79,198), 11832-11954 La Cienega Boulevard, ($20,194), Gilbert/La Palma ($24,008) and 7817 Woodley Avenue ($20,855). (7)Loan is secured by six properties. One 24-month extension is available at the borrower’s option, subject to certain terms and conditions. Monthly payments of interest only through June 2021, followed by equal monthly payments of principal ($65,250), plus accrued interest until maturity. (8)Loan requires monthly escrow reserve payments for real estate taxes related to the property located at 960-970 Knox Street. (9)For 701-751 Kingshill Place, fixed monthly payments of interest only through January 2023, followed by fixed monthly payments of interest and principal ($33,488) until maturity. (10)Fixed monthly payments of interest only. (11)Excludes unamortized debt issuance costs related to our unsecured revolving credit facility, which are presented in the line item “Deferred loan costs, net” in the consolidated balance sheets. Contractual Debt Maturities The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt premiums/discounts and debt issuance costs, as of March 31, 2021, and does not consider extension options available to us as noted in the table above (in thousands):
Assumption of Mortgage Loan On January 27, 2021, in connection with the acquisition of the property located at 7817 Woodley Avenue, we assumed a mortgage loan secured by this property. At the date of acquisition, the assumed loan had a principal balance of $3.2 million and a fair value of $3.3 million resulting in an initial net debt premium of $0.1 million. The mortgage loan bears interest at a fixed rate of 4.14% per annum. Credit Agreement We have a $600.0 million senior unsecured credit facility (the “Credit Agreement”), comprised of (i) a $500.0 million unsecured revolving credit facility (the "Revolver") which is scheduled to mature on February 13, 2024, and has two six-month extension options available, and (ii) a $100.0 million unsecured term loan facility which was fully repaid in November 2020 and may not be reborrowed. Subject to certain terms and conditions set forth in the Credit Agreement, we may request additional lender commitments up to an additional aggregate $900.0 million, which may be comprised of additional revolving commitments under the Revolver, additional term loan tranches or any combination of the foregoing. Interest on the Revolver is generally to be paid based upon, at our option, either (i) LIBOR plus an applicable margin that is based upon our investment grade ratings or (ii) the Base Rate (which is defined as the highest of (a) the federal funds rate plus 0.50%, (b) the administrative agent’s prime rate or (c) the Eurodollar Rate plus 1.00%) plus an applicable margin that is based on our investment grade ratings. As of March 31, 2021, the margins for the Revolver range from 0.725% to 1.40% per annum for LIBOR-based loans and 0.00% to 0.45% per annum for Base Rate-based loans, depending on our investment grade ratings. In addition to the interest payable on amounts outstanding under the Revolver, we are required to pay an applicable facility fee, on each lender's commitment amount under the Revolver, regardless of usage. The applicable facility fee ranges in amount from 0.125% to 0.300% per annum, depending on our investment grade ratings. The Revolver may be voluntarily prepaid in whole or in part at any time without premium or penalty. The Credit Agreement contains usual and customary events of default including defaults in the payment of principal, interest or fees, defaults in compliance with the covenants set forth in the Credit Agreement and other loan documentation, cross-defaults to certain other indebtedness, and bankruptcy and other insolvency defaults. If an event of default occurs and is continuing under the Credit Agreement, the unpaid principal amount of all outstanding loans, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. On March 31, 2021, we did not have any borrowings outstanding under the Revolver, leaving $500.0 million available for future borrowings. Debt Covenants The Credit Agreement, our $225 million unsecured term loan facility (the “$225 Million Term Loan Facility”), our $150 million unsecured term loan facility (the “$150 Million Term Loan Facility”), our $100 million unsecured guaranteed senior notes (the “$100 Million Notes”), our $125 million unsecured guaranteed senior notes (the “$125 Million Notes”) and our $25 million unsecured guaranteed senior notes and $75 million unsecured guaranteed senior notes (together the “Series 2019A and 2019B Notes”) all include a series of financial and other covenants that we must comply with, including the following covenants which are tested on a quarterly basis: •Maintaining a ratio of total indebtedness to total asset value of not more than 60%; •For the Credit Agreement, $225 Million Term Loan Facility and $150 Million Term Loan Facility, maintaining a ratio of secured debt to total asset value of not more than 45%; •For the $100 Million Notes, $125 Million Notes and Series 2019A and 2019B Notes (together the “Senior Notes”), maintaining a ratio of secured debt to total asset value of not more than 40%; •For the Senior Notes, maintaining a ratio of total secured recourse debt to total asset value of not more than 15%; •For the Credit Agreement, $225 Million Term Loan Facility and $150 Million Term Loan Facility, maintaining a minimum tangible net worth of at least the sum of (i) $2,061,865,500, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after September 30, 2019; •For the Senior Notes, maintaining a minimum tangible net worth of at least the sum of (i) $760,740,750, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after September 30, 2016; •Maintaining a ratio of adjusted EBITDA (as defined in each of the loan agreements) to fixed charges of at least 1.5 to 1.0; •Maintaining a ratio of total unsecured debt to total unencumbered asset value of not more than 60%; and •Maintaining a ratio of unencumbered NOI (as defined in each of the loan agreements) to unsecured interest expense of at least 1.75 to 1.00. Our $400.0 million of 2.125% senior notes due 2030 contain the following covenants (as defined in the indentures) that we must comply with: •Maintaining a ratio of total indebtedness to total asset value of not more than 60%. •Maintaining a ratio of secured debt to total asset value of not more than 40%. •Maintaining a Debt Service Coverage Ratio of at least 1.5 to 1.0; and •Maintaining a ratio of unencumbered assets to unsecured debt of at least 1.5 to 1.0. The Credit Agreement, $225 Million Term Loan Facility, $150 Million Term Loan Facility and Senior Notes also provide that our distributions may not exceed the greater of (i) 95.0% of our funds from operations or (ii) the amount required for us to qualify and maintain our status as a REIT and avoid the payment of federal or state income or excise tax in any 12-month period. Subject to the terms of the Senior Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, make-whole payment amount, or interest under the Senior Notes, (ii) a default in the payment of certain of our other indebtedness, (iii) a default in compliance with the covenants set forth in the Senior Notes agreement, and (iv) bankruptcy and other insolvency defaults, the principal and accrued and unpaid interest and the make-whole payment amount on the outstanding Senior Notes will become due and payable at the option of the purchasers. In addition, we are required to maintain at all times a credit rating on the Senior Notes from either S&P, Moody’s or Fitch. Our $60 million term loan contains a financial covenant that is tested on a quarterly basis, which requires us to maintain a minimum Debt Service Coverage Ratio (as defined in the term loan agreement) of at least 1.10 to 1.0. We were in compliance with all of our required quarterly debt covenants as of March 31, 2021.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessor – Operating Leases We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. For the three months ended March 31, 2021, we recognized $96.9 million of rental income related to operating lease payments, of which $80.1 million are for fixed lease payments and $16.8 million are for variable lease payments, respectively. For the comparable three month-period ended March 31, 2020, we recognized $75.1 million of rental income related to operating lease payments, of which $62.9 million were for fixed lease payments and $12.2 million were for variable lease payments, respectively. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2021 (in thousands):
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee We lease office space as part of conducting our day-to-day business. As of March 31, 2021, our office space leases have remaining lease terms ranging from approximately three months to five years and some include options to renew. These renewal terms can extend the lease term from to five years and are included in the lease term when it is reasonably certain that we will exercise the option. We also have one ground lease for a parcel of land that is adjacent to one of our properties and is used as a parking lot. This ground lease has a remaining lease term of approximately two years, with two additional ten-year options to renew, and monthly rent of $9,000 through expiration. As of March 31, 2021, total ROU assets and lease liabilities were approximately $5.3 million and $6.1 million, respectively. As of December 31, 2020, total ROU assets and lease liabilities were approximately $5.6 million and $6.4 million, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. The tables below present financial information associated with our leases for the three months ended March 31, 2021 and 2020, and as of March 31, 2021 and December 31, 2020.
(1)Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations.
(1)Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements. Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands):
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Leases | Leases Lessor – Operating Leases We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. For the three months ended March 31, 2021, we recognized $96.9 million of rental income related to operating lease payments, of which $80.1 million are for fixed lease payments and $16.8 million are for variable lease payments, respectively. For the comparable three month-period ended March 31, 2020, we recognized $75.1 million of rental income related to operating lease payments, of which $62.9 million were for fixed lease payments and $12.2 million were for variable lease payments, respectively. The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2021 (in thousands):
The future minimum base rents in the table above excludes tenant reimbursements of operating expenses, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. Lessee We lease office space as part of conducting our day-to-day business. As of March 31, 2021, our office space leases have remaining lease terms ranging from approximately three months to five years and some include options to renew. These renewal terms can extend the lease term from to five years and are included in the lease term when it is reasonably certain that we will exercise the option. We also have one ground lease for a parcel of land that is adjacent to one of our properties and is used as a parking lot. This ground lease has a remaining lease term of approximately two years, with two additional ten-year options to renew, and monthly rent of $9,000 through expiration. As of March 31, 2021, total ROU assets and lease liabilities were approximately $5.3 million and $6.1 million, respectively. As of December 31, 2020, total ROU assets and lease liabilities were approximately $5.6 million and $6.4 million, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. The tables below present financial information associated with our leases for the three months ended March 31, 2021 and 2020, and as of March 31, 2021 and December 31, 2020.
(1)Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations.
(1)Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements. Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands):
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Interest Rate Swaps |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | Interest Rate Swaps Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources and duration of our debt funding and through the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing and duration of our known or expected cash payments principally related to our borrowings. Derivative Instruments Our objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional value. We do not use derivatives for trading or speculative purposes. The change in fair value of derivatives designated and qualifying as cash flow hedges is initially recorded in accumulated other comprehensive income/(loss) (“AOCI”) and is subsequently reclassified from AOCI into earnings in the period that the hedged forecasted transaction affects earnings. The following table sets forth a summary of our interest rate swaps at March 31, 2021 and December 31, 2020 (dollars in thousands):
(1)Represents the notional value of swaps that are effective as of the balance sheet date presented. (2)As of March 31, 2021 and December 31, 2020, all of our derivatives were in a liability position and as such, the fair value is included in the line item “Interest rate swap liability” in the accompanying consolidated balance sheets. The following table sets forth the impact of our interest rate swaps on our consolidated statements of operations for the periods presented (in thousands):
We had an interest rate swap with a notional amount of $100.0 million and maturity date of August 14, 2021 (the “Swap”), that was used to hedge the monthly cash flows associated with $100 million of LIBOR-based variable-rate debt. In November 2020, in conjunction with the repayment of our $100 million term loan facility, we paid $1.2 million to terminate the Swap, which had an unrealized loss balance of $1.2 million in AOCI at the time of termination. Beginning from the termination date of the Swap (November 12, 2020) through the original maturity date of the Swap (August 14, 2021), we are amortizing the loss on this transaction from AOCI into interest expense on a straight-line basis. During the three months ended March 31, 2021, we amortized $0.4 million from AOCI into interest expense related to this transaction and we will amortize the remaining $0.6 million loss into interest expense through August 14, 2021. During the next twelve months, we estimate that an additional $6.8 million (including the remaining $0.6 million loss noted above) will be reclassified from AOCI into earnings as an increase to interest expense. Credit-risk-related Contingent Features Certain of our agreements with our derivative counterparties contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender within a specified time period, then we could also be declared in default on its derivative obligations. Certain of our agreements with our derivative counterparties contain provisions where if a merger or acquisition occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We have adopted FASB Accounting Standards Codification Topic 820: Fair Value Measurements and Disclosure (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Recurring Measurements – Interest Rate Swaps Currently, we use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. However, as of March 31, 2021, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, we have determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below sets forth the estimated fair value of our interest rate swaps as of March 31, 2021 and December 31, 2020, which we measure on a recurring basis by level within the fair value hierarchy (in thousands).
Financial Instruments Disclosed at Fair Value The carrying amounts of cash and cash equivalents, rents and other receivables, other assets, accounts payable, accrued expenses and other liabilities, and tenant security deposits approximate fair value because of their short-term nature. The fair value of our notes payable was estimated by calculating the present value of principal and interest payments, using discount rates that best reflect current market rates for financings with similar characteristics and credit quality, and assuming each loan is outstanding through its respective contractual maturity date. The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2021 and December 31, 2020 (in thousands):
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Related Party Transactions |
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Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Howard Schwimmer We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management fees and leasing commissions from entities controlled individually by Mr. Schwimmer. Fees and commissions earned from these entities are included in “Management, leasing and development services” in the consolidated statements of operations. We recorded $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively, in management, leasing and development services revenue.
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Commitments and Contingencies |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal From time to time, we are party to various lawsuits, claims and legal proceedings that arise in the ordinary course of business. We are not currently a party to any legal proceedings that we believe would reasonably be expected to have a material adverse effect on our business, financial condition or results of operations. Environmental We will generally perform environmental site assessments at properties we are considering acquiring. After the acquisition of such properties, we continue to monitor the properties for the presence of hazardous or toxic substances. From time to time, we acquire properties with known adverse environmental conditions. If at the time of acquisition, losses associated with environmental remediation obligations are probable and can be reasonably estimated, we record a liability. As of March 31, 2021, we are not aware of any environmental liabilities that would have a material impact on our consolidated financial condition, results of operations or cash flows. However, we cannot be sure that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise. Furthermore, we cannot assure you that future changes to environmental laws or regulations and their application will not give rise to loss contingencies for future environmental remediation. Tenant and Construction Related Commitments As of March 31, 2021, we had commitments of approximately $42.6 million for tenant improvement and construction work under the terms of leases with certain of our tenants and contractual agreements with our construction vendors. Concentrations of Credit Risk We have deposited cash with financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000 per institution. Although we have deposits at institutions in excess of federally insured limits as of March 31, 2021, we do not believe we are exposed to significant credit risk due to the financial position of the institutions in which those deposits are held. Concentration of Properties in Southern California As of March 31, 2021, all of our properties are located in the Southern California infill markets. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate and other conditions, including the impact of the outbreak of COVID-19 and related state and local government reactions. In response to COVID-19, most municipalities in Southern California, including many municipalities in which we own properties, have mandated a moratorium on all commercial evictions and have given tenants impacted by COVID-19 the unilateral right to defer rent while the emergency orders are in effect, with repayment generally within six to twelve months after the end of the local emergency. Only a small number of municipalities have allowed their local orders to expire or modified the orders to exclude some tenants (based on the tenant’s number of employees, being a publicly traded company or multinational company, or other characteristics), and in many of the local municipalities in which we operate, the eviction restrictions and rent deferment rights are set to expire by June 30, 2021, while in other municipalities the restrictions expire when the local emergency is lifted. We cannot currently predict whether or not these restrictions may be extended or for how long. Some of the orders have been extended multiple times. A number of our tenants have taken advantage of the relief provided by the local government mandates authorizing deferral of rent, irrespective of such tenants’ actual ability to pay such rent, and we are currently unable to predict the ultimate impact that the COVID-19 pandemic will have on our tenants or the number of tenants that will continue to take advantage of the relief provided by the local government mandates authorizing the deferral of rent. The continued impact of the pandemic on our and our tenants’ businesses is largely dependent on efforts to stem the spread of COVID-19, including governmental efforts to distribute vaccines and overall vaccination rates in the areas in which we own properties. For details related to rent relief provided to tenants since the pandemic, see Note 2 under “—COVID-19 Lease Concessions.” Tenant Concentration During the three months ended March 31, 2021, no single tenant accounted for more than 5% of our total consolidated rental income.
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Dispositions and Real Estate Held For Sale |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions and Real Estate Held For Sale | Dispositions and Real Estate Held For Sale Dispositions The following table summarizes information related to the properties that we sold during the three months ended March 31, 2021.
(1)Represents the gross contractual sales price before commissions, prorations, credits and other closing costs. Real Estate Held for Sale As of December 31, 2020, our property located at 14723-14825.25 Oxnard Street in Van Nuys, California was classified as held for sale. As of March 31, 2021, we did not have any properties classified as held for sale. The following table summarizes the major classes of assets and liabilities associated with real estate property classified as held for sale as of December 31, 2020 (dollars in thousands).
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Common Stock On November 9, 2020, we established an at-the-market equity offering program pursuant to which we may sell from time to time shares of our common stock having an aggregate sales price of up to $750.0 million (the “$750 Million ATM Program”). In connection with the $750 Million ATM Program, we may sell shares of our common stock directly through sales agents or we may enter into forward equity sale agreements with certain financial institutions acting as forward purchasers whereby, at our discretion, the forward purchasers may borrow and sell shares of our common stock under our $750 Million ATM Program. The use of a forward equity sale agreement allows us to lock in a share price on the sale of shares of our common stock at the time the agreement is executed but defer settling the forward equity sale agreements and receiving the proceeds from the sale of shares until a later date. During the three months ended March 31, 2021, we directly sold a total of 2,415,386 shares of our common stock under the $750 Million ATM Program at a weighted average price of $49.61 per share, for gross proceeds of $119.8 million, and net proceeds of $118.3 million, after deducting the sales agents’ fee. During the three months ended March 31, 2021, we entered into a forward equity sale agreement with a financial institution acting as a forward purchaser under the $750 Million ATM Program with respect to 1,515,517 shares of our common stock at an initial forward sale price of $50.05 per share. We did not receive any proceeds from the sale of common shares by the forward purchasers. We currently expect to physically settle the forward equity sale agreement and receive cash proceeds upon one or more settlement dates, at our discretion, prior to the final settlement date on March 31, 2022, at which time we expect to receive aggregate net cash proceeds at settlement equal to $75.8 million before adjustments under the forward equity sale agreement (as described in the next sentence). The forward sale price that we expect to receive upon physical settlement of the agreement will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends during the term of the agreement. We have not settled any portion of this forward equity sale agreement as of March 31, 2021. Assuming full physical settlement of the open forward equity sale agreement described above, as of March 31, 2021, approximately $523.7 million of common stock remains available to be sold under the $750 Million ATM Program. Future sales, if any, will depend on a variety of factors, including among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us. Noncontrolling Interests Noncontrolling interests relate to interests in the Operating Partnership, represented by common units of partnership interests in the Operating Partnership (“OP Units”), fully-vested LTIP units, fully-vested performance units, 4.43937% cumulative redeemable convertible preferred units of partnership interest in the Operating Partnership (the “Series 1 CPOP Units”) and 4.00% Cumulative Redeemable Convertible Preferred Units of partnership interest in the Operating Partnership (the “Series 2 CPOP Units), that are not owned by us. As of March 31, 2021, noncontrolling interests included 5,402,694 OP Units and 1,239,048 fully-vested LTIP units and performance units and represented approximately 4.7% of our Operating Partnership. OP Units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss and distributions of our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis. During the three months ended March 31, 2021, 1,187 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $39 thousand of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders’ equity. Amended and Restated 2013 Incentive Award Plan We maintain one share-based incentive compensation plan, the Amended and Restated Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which, we may make grants of restricted stock, LTIP units of partnership interest in our Operating Partnership (“LTIP Units”), performance units in our Operating Partnership (“Performance Units”), dividend equivalents and other stock based and cash awards to our non-employee directors, employees and consultants. As of March 31, 2021, a total of 481,359 shares of common stock, LTIP Units and Performance Units remain available for issuance under the Plan. Shares and units granted under the Plan may be authorized but unissued shares or units, or, if authorized by the board of directors, shares purchased in the open market. If an award under the Plan is forfeited, expires, or is settled for cash, any shares or units subject to such award will generally be available for future awards. LTIP Units and Performance Units LTIP Units and Performance Units are each a class of limited partnership units in the Operating Partnership. Initially, LTIP Units and Performance Units do not have full parity with OP Units with respect to liquidating distributions. However, upon the occurrence of certain events described in the Operating Partnership’s partnership agreement, the LTIP Units and Performance Units can over time achieve full parity with the OP Units for all purposes. If such parity is reached, vested LTIP Units and vested Performance Units may be converted into an equal number of OP Units, and, upon conversion, enjoy all rights of OP Units. LTIP Units, whether vested or not, receive the same quarterly per-unit distributions as OP Units, which equal the per-share distributions on shares of our common stock. Performance Units that have not vested receive a quarterly per-unit distribution equal to 10% of the distributions paid on OP Units. Share-Based Award Activity The following table sets forth our unvested restricted stock activity and unvested LTIP Unit activity for the three months ended March 31, 2021:
(1)During the three months ended March 31, 2021, 28,146 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum statutory tax withholding requirements associated with the vesting of restricted shares of common stock. The following table sets forth the vesting schedule of all unvested share-based awards outstanding as of March 31, 2021:
(1)Represents the maximum number of Performance Units that would become earned and vested in December 2021, 2022 and 2023, in the event that the specified maximum total shareholder return and FFO per share growth hurdles are achieved at the end of the three-year performance period for awards that were initially granted in December 2018, 2019, and 2020, respectively. Compensation Expense The following table sets forth the amounts expensed and capitalized for all share-based awards for the reported periods presented below (in thousands):
(1)Amounts expensed are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2)For the three months ended March 31, 2021 and 2020, amounts capitalized relate to employees who provide construction services, and are included in “Building and improvements” in the consolidated balance sheets. As of March 31, 2021, total unrecognized compensation cost related to all unvested share-based awards was $30.6 million and is expected to be recognized over a weighted average remaining period of 29 months. Changes in Accumulated Other Comprehensive Income The following table summarizes the changes in our AOCI balance for the three months ended March 31, 2021 and 2020, which consists solely of adjustments related to our cash flow hedges (in thousands):
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Earnings Per Share |
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Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
Unvested share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are accounted for as participating securities. As such, unvested shares of restricted stock, unvested LTIP Units and unvested Performance Units are considered participating securities. Participating securities are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and each participating security according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Participating securities are also included in the computation of diluted EPS using the more dilutive of the two-class method or treasury stock method for unvested shares of restricted stock and LTIP Units, and by determining if certain market conditions have been met at the reporting date for unvested Performance Units. The effect of including unvested shares of restricted stock and unvested LTIP Units using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as their inclusion would have been anti-dilutive. Performance Units, which are subject to vesting based on the Company achieving certain TSR levels over a three-year performance period, are included as contingently issuable shares in the calculation of diluted EPS when TSR has been achieved at or above the threshold levels specified in the award agreements, assuming the reporting period is the end of the performance period, and the effect is dilutive. We also consider the effect of other potentially dilutive securities, including the Series 1 CPOP Units, Series 2 CPOP Units and OP Units, which may be redeemed for shares of our common stock under certain circumstances, and shares issuable under forward equity sales agreements, and include them in our computation of diluted EPS when their inclusion is dilutive.
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Subsequent Events |
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Subsequent Events | Subsequent Events Acquisitions The following table summarizes the properties we acquired subsequent to March 31, 2021:
(1) Represents acquisition of a 5.2 acre redevelopment site. (2) Represents acquisition of a 2.8 acre industrial outdoor storage site. (3) Represents acquisition of a 4.5 acre redevelopment site. Dividends Declared On April 19, 2021, our board of directors declared the following quarterly cash dividends/distributions:
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation As of March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020, the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Under consolidation guidance, we have determined that our Operating Partnership is a variable interest entity because the holders of limited partnership interests do not have substantive kick-out rights or participating rights. Furthermore, we are the primary beneficiary of the Operating Partnership because we have the obligation to absorb losses and the right to receive benefits from the Operating Partnership and the exclusive power to direct the activities of the Operating Partnership. As of March 31, 2021 and December 31, 2020, the assets and liabilities of the Company and the Operating Partnership are substantially the same, as the Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The interim financial statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020 and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short-term maturity of these investments.
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Restricted Cash | Restricted Cash Restricted cash is comprised of escrow reserves that we are required to set aside for future costs as required by certain agreements with our lenders, and from time to time, includes cash proceeds from property sales that are being held by qualified intermediaries for purposes of facilitating tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”). Restricted cash balances are included with cash and cash equivalents balances as of the beginning and ending of each period presented in the consolidated statements of cash flows.
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Investments in Real Estate | Investments in Real Estate Acquisitions We account for acquisitions of properties under Accounting Standards Update (“ASU”) 2017-01, Business Combinations - Clarifying the Definition of a Business, which provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses and further revises the definition of a business. Our acquisitions of properties generally no longer meet the revised definition of a business and accordingly are accounted for as asset acquisitions. For asset acquisitions, we allocate the cost of the acquisition, which includes the purchase price and associated acquisition transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. These individual assets and liabilities typically include land, building and improvements, tenant improvements, intangible assets and liabilities related to above- and below-market leases, intangible assets related to in-place leases, and from time to time, assumed mortgage debt. As there is no measurement period concept for an asset acquisition, the allocated cost of the acquired assets is finalized in the period in which the acquisition occurs. We determine the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use. These Level 3 inputs include discount rates, capitalization rates, market rents and comparable sales data for similar properties. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. In determining the “as-if-vacant” value for the properties we acquired during the three months ended March 31, 2021, we used discount rates ranging from 5.0% to 7.0% and exit capitalization rates ranging from 4.0% to 6.0%. In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above- and below-market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the estimated costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. We consider estimated costs such as the value associated with leasing commissions, legal and other costs, as well as the estimated period of time necessary to lease such a property to its occupancy level at the time of its acquisition. In determining the fair value of acquisitions completed during the three months ended March 31, 2021, we used an estimated average lease-up period of six months. The difference between the fair value and the face value of debt assumed, if any, in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities are based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. In determining the fair value of debt assumed during the three months ended March 31, 2021, we used an estimated market interest rate of 3.75%. Capitalization of Costs We capitalize direct costs incurred in developing, renovating, rehabilitating and improving real estate assets as part of the investment basis. This includes certain general and administrative costs, including payroll, bonus and non-cash equity compensation of the personnel performing redevelopment, renovations and rehabilitation if such costs are identifiable to a specific activity to get the real estate asset ready for its intended use. During the redevelopment and construction periods of a project, we also capitalize interest, real estate taxes and insurance costs. We cease capitalization of costs upon substantial completion of the project, but no later than one year from cessation of major construction activity. If some portions of a project are substantially complete and ready for use and other portions have not yet reached that stage, we cease capitalizing costs on the completed portion of the project but continue to capitalize for the incomplete portion of the project. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. We capitalized interest costs of $0.7 million and $0.9 million during the three months ended March 31, 2021 and 2020, respectively. We capitalized real estate taxes and insurance costs aggregating $0.4 million and $0.3 million during the three months ended March 31, 2021 and 2020, respectively. We capitalized compensation costs for employees who provide construction services of $1.3 million and $1.0 million during the three months ended March 31, 2021 and 2020, respectively. Depreciation and Amortization Real estate, including land, building and land improvements, tenant improvements, furniture, fixtures and equipment and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regard to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. The values allocated to buildings, site improvements, in-place lease intangibles and tenant improvements are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 5-20 years for site improvements, and the shorter of the estimated useful life or respective lease term for in-place lease intangibles and tenant improvements. As discussed above in—Investments in Real Estate—Acquisitions, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an acquired lease intangible asset or liability and amortized to “rental income” over the remaining term of the related leases. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate that a change in the useful life has occurred, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.
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Assets Held for Sale | Assets Held for Sale We classify a property as held for sale when all of the criteria set forth in the Accounting Standards Codification (“ASC”) Topic 360: Property, Plant and Equipment (“ASC 360”) have been met. The criteria are as follows: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. At the time we classify a property as held for sale, we cease recording depreciation and amortization. A property classified as held for sale is measured and reported at the lower of its carrying amount or its estimated fair value less cost to sell. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. To review real estate assets for recoverability, we consider current market conditions as well as our intent with respect to holding or disposing of the asset. The intent with regards to the underlying assets might change as market conditions and other factors change. Fair value is determined through various valuation techniques including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third-party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with respect to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties.
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Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Code commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal corporate income tax, including any applicable alternative minimum tax. In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities and flow-through entities such as partnerships is reportable in the income tax returns of the respective equity holders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2021 and 2020. We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2021, and December 31, 2020, we have not established a liability for uncertain tax positions.
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 7.
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Revenue Recognition | Revenue Recognition Our primary sources of revenue are rental income, management, leasing and development services and gains on sale of real estate. Rental Income We lease industrial space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum annual lease payments are recognized in rental income on a straight-line basis over the term of the related lease, regardless of when payments are contractually due, when collectability is probable. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. Lease termination fees, which are included in rental income, are recognized when the related leases are canceled and we have no continuing obligation to provide services to such former tenants. Our lease agreements with tenants generally contain provisions that require tenants to reimburse us for certain property expenses. Estimated reimbursements from tenants for these property expenses, which include real estate taxes, insurance, common area maintenance and other recoverable operating expenses, are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and presented as a single line item “Rental income” in our consolidated statements of operations. We record revenues and expenses on a gross basis for lessor costs (which include real estate taxes) when these costs are reimbursed to us by our tenants. Conversely, we record revenues and expenses on a net basis for lessor costs when they are paid by our tenants directly to the taxing authorities on our behalf. COVID-19 Lease Concessions From March 2020 through December 2020, we received rent relief requests from a number of tenants claiming impacts from COVID-19, many of whom we believe may have made such rent relief requests in response to local California governmental moratoriums on commercial tenant evictions and provisions enabling commercial tenants to defer rent. In response to these requests, during 2020 we granted the following forms of rent relief to certain tenants: (a) application of security deposits to contractual base rent, (b) acceleration of future rent concessions in the original lease contract to cover contractual base rent and (c) deferral of contractual base rent with a typical deferral period of approximately one to two months and repayment that was generally scheduled to begin in the third or fourth quarter of 2020. Pursuant to a FASB issued question-and-answer document which addressed frequently asked questions about accounting for concessions related to the effects of the COVID-19 pandemic, we elected to forgo the evaluation of the enforceable rights and obligations of our lease contracts and elected to account for each rent relief agreement granting lease concessions in the form of accelerated future rent concessions and/or rent deferrals as a lease modification under ASC 842. As these lease concessions generally have not substantially changed the amount of consideration in the original lease contract (only the timing of lease payments has changed), these lease concessions have not had a material impact on our consolidated financial statements to date. During 2020, we deferred $4.6 million of contractual base rent payments which represented approximately 1.4% of our total consolidated rental income for 2020. As of March 31, 2021, we have collected approximately $3.6 million, or 93.2%, of the deferred payments due as of March 31, 2021. Additionally, as of March 31, 2021, we had $0.7 million of outstanding deferred payments, of which $0.5 million is due through the remainder of 2021. Management, leasing and development services We provide property management services and leasing services to related party and third-party property owners, the customer, in exchange for fees and commissions. Property management services include performing property inspections, monitoring repairs and maintenance, negotiating vendor contracts, maintaining tenant relations and providing financial and accounting oversight. For these services, we earn monthly management fees, which are based on a fixed percentage of each managed property’s monthly tenant cash receipts. We have determined that control over the services is passed to the customer simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to our customers. Leasing commissions are earned when we provide leasing services that result in an executed lease with a tenant. We have determined that control over the services is transferred to the customer upon execution of each lease agreement. We earn leasing commissions based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Gain or Loss on Sale of Real Estate We account for dispositions of real estate properties, which are considered nonfinancial assets, in accordance with ASC 610-20: Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets and recognize a gain or loss on sale of real estate upon transferring control of the nonfinancial asset to the purchaser, which is generally satisfied at the time of sale. If we were to conduct a partial sale of real estate by transferring a controlling interest in a nonfinancial asset, while retaining a noncontrolling ownership interest, we would measure any noncontrolling interest received or retained at fair value, and recognize a full gain or loss. If we receive consideration before transferring control of a nonfinancial asset, we recognize a contract liability. If we transfer control of the asset before consideration is received, we recognize a contract asset. When leases contain purchase options, we assess the probability that the tenant will execute the purchase option both at lease commencement and at the time the tenant communicates its intent to exercise the purchase option. If we determine the exercise of the purchase option is likely, we will account for the lease as a sales-type lease and derecognize the associated real estate assets on our balance sheet and record a gain or loss on sale of real estate.
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Valuation of Receivables | Valuation of Operating Lease Receivables We may be subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables related to our operating leases. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. On a quarterly basis, we perform an assessment of the collectability of operating lease receivables on a tenant-by-tenant basis, which includes reviewing the age and nature of our receivables, the payment history and financial condition of the tenant, our assessment of the tenant’s ability to meet its lease obligations and the status of negotiations of any disputes with the tenant. For all periods subsequent to March 2020, our assessment has specifically included the impact of the COVID-19 pandemic, including but not limited to tenants who have requested and/or received rent relief as further described above under “—COVID-19 Lease Concessions.” Any changes in the collectability assessment for an operating lease is recognized as an adjustment, which can be a reduction or increase, to rental income in the consolidated statements of operations. |
Deferred Leasing Costs | Deferred Leasing Costs We capitalize the incremental direct costs of originating a lease that would not have been incurred had the lease not been executed. As a result, deferred leasing costs will generally only include third-party broker commissions.
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Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to a recognized debt liability are presented in the balance sheet as a reduction from the carrying value of the debt liability. This offset against the debt liability is treated similarly to a debt discount, which effectively reduces the proceeds of a borrowing. For line of credit arrangements, we present debt issuance costs as an asset and amortize the cost over the term of the line of credit arrangement. See Note 5. |
Equity Based Compensation | Equity Based Compensation We account for equity-based compensation in accordance with ASC Topic 718: Compensation - Stock Compensation. Total compensation cost for all share-based awards is based on the estimated fair market value on the grant date. For share-based awards that vest based solely on a service condition, we recognize compensation cost on a straight-line basis over the total requisite service period for the entire award. For share-based awards that vest based on a market condition, we recognize compensation cost on a straight-line basis over the requisite service period of each separately vesting tranche. For share-based awards that vest based on a performance condition, we recognize compensation cost based on the number of awards that are expected to vest based on the probable outcome of the performance condition. Compensation cost for these awards will be adjusted to reflect the number of awards that ultimately vest. Forfeitures are recognized in the period in which they occur. See Note 12. |
Equity Offerings | Equity Offerings Underwriting commissions and offering costs incurred in connection with common stock offerings and our at-the-market equity offering program have been reflected as a reduction of additional paid-in capital. Underwriting commissions and offering costs related to our preferred stock issuances have been reflected as a direct reduction of the preferred stock balance. Sales of our common stock under forward equity sale agreements (as discussed in Note 12) meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. |
Earnings Per Share | Earnings Per Share We calculate earnings per share (“EPS”) in accordance with ASC 260 - Earnings Per Share (“ASC 260”). Under ASC 260, unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in the computation of basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding determined for the basic EPS computation plus the potential effect of any dilutive securities including shares issuable under forward equity sale agreements and unvested share-based awards under the treasury stock method. We include unvested shares of restricted stock and unvested LTIP units in the computation of diluted EPS by using the more dilutive of the two-class method or treasury stock method. We include unvested performance units as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. See Note 13.
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Segment Reporting | Segment Reporting Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. |
Leases as a Lessee | Leases as a Lessee We determine if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) are included in “Other assets” and lease liabilities are included in “Accounts payable, accrued expenses and other liabilities” in our consolidated balance sheets. ROU assets represent our right to use, or control the use of, a specified asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Because our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Additionally, for our operating leases, we do not separate non-lease components, such as common area maintenance, from associated lease components. See Note 6. |
Adoption of New Accounting Pronouncements; Recently Issued Accounting Pronouncements | Reference Rate Reform On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives in our financial statements consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Summary of Significant Accounting Policies (Tables) |
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Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of our cash and cash equivalents and restricted cash at the beginning and end of the three months ended March 31, 2021 and 2020 (in thousands):
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Investments in Real Estate (Tables) |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Acquired Wholly Owned Property Acquisitions | The following table summarizes the wholly-owned industrial properties we acquired during the three months ended March 31, 2021:
(1)Represents the gross contractual purchase price before prorations, closing costs and other acquisition related costs. Each acquisition was funded with available cash on hand unless otherwise noted. (2)The acquisition of 7817 Woodley Avenue was funded through a combination of cash on hand and the assumption of $3.2 million of debt. This property is the remaining asset in the Van Nuys Airport Industrial Center Portfolio that we acquired in December 2020.
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Summary of Fair Value of Amounts Recognized | The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands):
(1)Acquired lease intangible assets is comprised of $3.1 million of in-place lease intangibles with a weighted average amortization period of 3.6 years and $12 thousand of above-market lease intangibles with a weighted average amortization period of 1.7 years. (2)Includes other working capital assets acquired and liabilities assumed at the time of acquisition. (3)Represents below-market lease intangibles with a weighted average amortization period of 3.8 years. (4)In connection with the acquisition of one property, we assumed a mortgage loan from the seller. At the date of acquisition, the loan had a fair value of $3.3 million and a principal balance of $3.2 million.
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Acquired Lease Intangibles (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Acquired Lease Intangible Assets and Liabilities | The following table summarizes our acquired lease intangible assets, including the value of in-place tenant leases and above-market tenant leases, and our acquired lease intangible liabilities which includes below-market tenant leases (in thousands):
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Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles | The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2021 and 2020 (in thousands):
(1)The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented. (2)The amortization of net below-market tenant leases is recorded as an increase to rental income in the consolidated statements of operations for the periods presented.
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Notes Payable (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following table summarizes the components and significant terms of our indebtedness as of March 31, 2021 and December 31, 2020 (dollars in thousands):
(1)Reflects the contractual interest rate under the terms of each loan as of March 31, 2021 and includes the effect of interest rate swaps that were effective as of March 31, 2021. See footnote (5) below. Excludes the effect of unamortized debt issuance costs and unamortized fair market value premiums and discounts. (2)The interest rates on these loans are comprised of LIBOR plus a LIBOR margin. The LIBOR margins will range from 0.725% to 1.400% per annum for the unsecured revolving credit facility, 0.90% to 1.75% per annum for the $225.0 million term loan facility and 1.40% to 2.35% per annum for the $150.0 million term loan facility, depending on our investment grade rating, which may change from time to time. (3)The unsecured revolving credit facility is subject to an applicable facility fee which is calculated as a percentage of the total lenders’ commitment amount, regardless of usage. The applicable facility fee will range from 0.125% to 0.300% per annum depending upon our investment grade rating. (4) Two additional six-month extensions are available at the borrower’s option, subject to certain terms and conditions. (5)As of March 31, 2021, interest on the $225.0 million term loan facility and $150 million term loan facility have been effectively fixed through the use of interest rate swaps. See Note 7 for details related to our interest rate swaps. (6)Fixed monthly payments of interest and principal until maturity as follows: 2601-2641 Manhattan Beach Boulevard ($23,138), 960-970 Knox Street ($17,538), 7612-7642 Woodwind Drive ($24,270), 11600 Los Nietos ($22,637), 5160 Richton Street ($23,270), 22895 Eastpark Drive ($15,396), 13943-13955 Balboa Boulevard ($79,198), 11832-11954 La Cienega Boulevard, ($20,194), Gilbert/La Palma ($24,008) and 7817 Woodley Avenue ($20,855). (7)Loan is secured by six properties. One 24-month extension is available at the borrower’s option, subject to certain terms and conditions. Monthly payments of interest only through June 2021, followed by equal monthly payments of principal ($65,250), plus accrued interest until maturity. (8)Loan requires monthly escrow reserve payments for real estate taxes related to the property located at 960-970 Knox Street. (9)For 701-751 Kingshill Place, fixed monthly payments of interest only through January 2023, followed by fixed monthly payments of interest and principal ($33,488) until maturity. (10)Fixed monthly payments of interest only. (11)Excludes unamortized debt issuance costs related to our unsecured revolving credit facility, which are presented in the line item “Deferred loan costs, net” in the consolidated balance sheets.
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Summary of Future Minimum Debt Payments | The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt premiums/discounts and debt issuance costs, as of March 31, 2021, and does not consider extension options available to us as noted in the table above (in thousands):
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Base Rent Under Non-cancelable Operating Leases | The following table sets forth the undiscounted cash flows for future minimum base rents to be received under operating leases as of March 31, 2021 (in thousands):
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Lease Cost | The tables below present financial information associated with our leases for the three months ended March 31, 2021 and 2020, and as of March 31, 2021 and December 31, 2020.
(1)Amounts are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations.
(1)Because the rate implicit in each of our leases was not readily determinable, we used our incremental borrowing rate. In determining our incremental borrowing rate for each lease, we considered recent rates on secured borrowings, observable risk-free interest rates and credit spreads correlating to our creditworthiness, the impact of collateralization and the term of each of our lease agreements.
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Maturities of Lease Liabilities | Maturities of lease liabilities as of March 31, 2021 were as follows (in thousands):
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Interest Rate Swaps (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Interest Rate Swap Agreement | The following table sets forth a summary of our interest rate swaps at March 31, 2021 and December 31, 2020 (dollars in thousands):
(1)Represents the notional value of swaps that are effective as of the balance sheet date presented. (2)As of March 31, 2021 and December 31, 2020, all of our derivatives were in a liability position and as such, the fair value is included in the line item “Interest rate swap liability” in the accompanying consolidated balance sheets.
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Summary of Impact of Interest Rate Swaps on Consolidated Financial Statements | The following table sets forth the impact of our interest rate swaps on our consolidated statements of operations for the periods presented (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Vale on a Recurring Basis by Level within Fair Value Hierarchy | The table below sets forth the estimated fair value of our interest rate swaps as of March 31, 2021 and December 31, 2020, which we measure on a recurring basis by level within the fair value hierarchy (in thousands).
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Carrying Value and Estimated Fair Value of Notes Payable | The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2021 and December 31, 2020 (in thousands):
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Dispositions and Real Estate Held For Sale (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Properties Sold | The following table summarizes information related to the properties that we sold during the three months ended March 31, 2021.
(1)Represents the gross contractual sales price before commissions, prorations, credits and other closing costs.
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Disclosure of Assets and Liabilities Associated with Real Estate Held for Sale | The following table summarizes the major classes of assets and liabilities associated with real estate property classified as held for sale as of December 31, 2020 (dollars in thousands).
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unvested Restricted Stock Activity | The following table sets forth our unvested restricted stock activity and unvested LTIP Unit activity for the three months ended March 31, 2021:
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Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding | The following table sets forth the vesting schedule of all unvested share-based awards outstanding as of March 31, 2021:
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Share-based Payment Arrangement, Expensed and Capitalized, Amount | The following table sets forth the amounts expensed and capitalized for all share-based awards for the reported periods presented below (in thousands):
(1)Amounts expensed are included in “General and administrative” and “Property expenses” in the accompanying consolidated statements of operations. (2)For the three months ended March 31, 2021 and 2020, amounts capitalized relate to employees who provide construction services, and are included in “Building and improvements” in the consolidated balance sheets.
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Summary of the Components of Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in our AOCI balance for the three months ended March 31, 2021 and 2020, which consists solely of adjustments related to our cash flow hedges (in thousands):
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
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Subsequent Events Subsequent Events (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acquisitions | The following table summarizes the properties we acquired subsequent to March 31, 2021:
(1) Represents acquisition of a 5.2 acre redevelopment site. (2) Represents acquisition of a 2.8 acre industrial outdoor storage site. (3) Represents acquisition of a 4.5 acre redevelopment site.
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Dividends Declared | On April 19, 2021, our board of directors declared the following quarterly cash dividends/distributions:
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Organization (Detail) ft² in Millions |
Mar. 31, 2021
ft²
property
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of real estate properties | property | 257 |
Area of real estate property (square feet) | ft² | 32.1 |
Number of real estate properties additionally managed | property | 20 |
Area of real estate property additionally managed | ft² | 1.0 |
Summary of Significant Accounting Policies - Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 123,933 | $ 176,293 | $ 112,432 | $ 78,857 |
Restricted cash | 47 | 1,230 | 46 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 123,980 | $ 177,523 | $ 112,478 | $ 78,857 |
Acquired Lease Intangibles - Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of (below) above market lease intangibles, net | $ (2,712) | $ (2,402) |
In-place lease intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of in-place lease intangibles | 7,318 | 5,822 |
Net below market tenant leases | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization of (below) above market lease intangibles, net | $ (2,712) | $ (2,402) |
Notes Payable - Summary of Future Minimum Debt Payments (Detail) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
April 1, 2021 - December 31, 2021 | $ 1,397 | |
2022 | 2,177 | |
2023 | 289,815 | |
2024 | 13,415 | |
2025 | 100,961 | |
Thereafter | 818,650 | |
Total | $ 1,226,415 | $ 1,223,494 |
Leases - Narrative (Detail) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
renewal_option
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Lessor, Lease, Description [Line Items] | |||
Operating Lease Fixed And Variable Lease Payments | $ 96,900,000 | $ 75,100,000 | |
Operating Lease, Lease Income, Lease Payments | 80,100,000 | 62,900,000 | |
Operating Lease, Variable Lease Income | 16,800,000 | $ 12,200,000 | |
Right-of-use assets | 5,300,000 | $ 5,600,000 | |
Lease liabilities | $ 6,098,000 | $ 6,400,000 | |
Ground Lease | |||
Lessor, Lease, Description [Line Items] | |||
Remaining lease term | 2 years | ||
Renewal term | 10 years | ||
Renewal options | renewal_option | 2 | ||
Monthly rent expense | $ 9,000 | ||
Minimum | Office Leases | |||
Lessor, Lease, Description [Line Items] | |||
Remaining lease term | 3 months | ||
Renewal term | 3 years | ||
Maximum | Office Leases | |||
Lessor, Lease, Description [Line Items] | |||
Remaining lease term | 5 years | ||
Renewal term | 5 years |
Leases - Future Minimum Base Rents Under Operating Leases - Rolling Twelve Months (Detail) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2022 | $ 302,980 |
2023 | 265,898 |
2024 | 217,094 |
2025 | 165,084 |
2026 | 124,376 |
Thereafter | 320,193 |
Total | $ 1,395,625 |
Leases - Lease Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Leases [Abstract] | ||
Operating lease cost | $ 402 | $ 305 |
Variable lease cost | 16 | 12 |
Total lease cost | $ 418 | $ 317 |
Leases - Other Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 306 | $ 180 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 1,014 |
Leases - Lease Term and Discount Rate (Detail) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term | 3 years 10 months 24 days | 4 years 2 months 12 days |
Weighted-average discount rate | 2.96% | 2.99% |
Leases - Lease Liability Maturities (Detail) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
April 1, 2021 - December 31, 2021 | $ 1,162 | |
2022 | 1,615 | |
2023 | 1,624 | |
2024 | 1,600 | |
2025 | 472 | |
Thereafter | 0 | |
Total undiscounted lease payments | 6,473 | |
Less imputed interest | (375) | |
Total lease liabilities | $ 6,098 | $ 6,400 |
Interest Rate Swaps - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Nov. 16, 2020 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Nov. 12, 2020 |
|
Derivative [Line Items] | ||||
Accumulated other comprehensive loss | $ (13,996) | $ (17,709) | ||
Amount estimated to be reclassified during next 12 months from AOCI into earnings as an increase to interest expense | 6,800 | |||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 100,000 | |||
Payments For Termination Of Cash Flow Swap, Operating | $ 1,200 | |||
Accumulated other comprehensive loss | $ 1,200 | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (400) | |||
Amount estimated to be reclassified during next 12 months from AOCI into earnings as an increase to interest expense | $ 600 |
Related Party Transactions (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Chief Executive Officer | ||
Related Party Transaction [Line Items] | ||
Revenue from management and leasing services | $ 0.1 | $ 0.1 |
Commitments and Contingencies (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
tenant
| |
Commitments And Contingencies [Line Items] | |
Commitments for tenant improvements and construction work | $ 42,600,000 |
Cash, FDIC Insured Amount | $ 250,000 |
Customer Concentration Risk | Base Rent | |
Commitments And Contingencies [Line Items] | |
Number of major tenants | tenant | 0 |
Customer Concentration Risk | Total Rental Revenues | |
Commitments And Contingencies [Line Items] | |
Concentration risk, percentage | 5.00% |
Dispositions and Real Estate Held For Sale - Real Estate Held For Sale (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Long Lived Assets Held-for-sale [Line Items] | ||
Real estate held for sale | $ 10,353 | |
Accumulated depreciation | (1,548) | |
Real estate held for sale, net | 8,805 | |
Other assets associated with real estate held for sale | 40 | |
Total assets associated with real estate held for sale, net | $ 0 | 8,845 |
Tenant security deposits | 137 | |
Other liabilities associated with real estate held for sale | 56 | |
Disposal Group, Including Discontinued Operation, Liabilities, Total | $ 0 | 193 |
Land | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Real estate held for sale | 4,458 | |
Buildings and improvements | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Real estate held for sale | 5,452 | |
Tenant improvements | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Real estate held for sale | $ 443 |
Equity - Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Nov. 09, 2020 |
Mar. 31, 2021 |
Mar. 31, 2022 |
|
At The Market Equity Offering Program, $750 Million | |||
Class of Stock [Line Items] | |||
Maximum aggregate offering amount | $ 750.0 | ||
Issuance of common stock (in shares) | 2,415,386 | ||
Common stock share price (in dollars per share) | $ 49.61 | ||
Gross proceeds from the issuance of common stock | $ 119.8 | ||
Net proceeds from issuance of common stock | 118.3 | ||
Value of shares available under ATM | $ 523.7 | ||
Forward Sale Agreement | |||
Class of Stock [Line Items] | |||
Number of shares subject to forward sale agreement (in shares) | 1,515,517 | ||
Price per share (in dollars per share) | $ 50.05 | ||
Forward Sale Agreement | Forecast | |||
Class of Stock [Line Items] | |||
Sale Of Stock, Proceeds From Settlement Of Forward Sale Agreement | $ 75.8 |
Equity - 2013 Incentive Award Plan (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2021
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Performance Unit Distribution Sharing Percentage | 10.00% |
Amended and Restated 2013 Incentive Award Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock, shares reserved for future issuance | 481,359 |
Equity - Share-based Awards Expensed & Capitalized Amounts (Detail) - Amended 2013 Incentive Award Plan - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expensed share-based compensation | $ 4,261 | $ 3,570 |
Capitalized share-based compensation | 78 | 57 |
Total share-based compensation | 4,339 | $ 3,627 |
Unrecognized compensation expense related to non-vested shares | $ 30,600 | |
Weighted average remaining vesting period | 29 months |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Numerator: | ||
Net income | $ 30,643 | $ 15,272 |
Less: Preferred stock dividends | (3,636) | (3,636) |
Less: net income attributable to noncontrolling interests | (1,969) | (717) |
Less: Net income attributable to participating securities | (141) | (131) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 24,897 | $ 10,788 |
Denominator: | ||
Weighted average shares of common stock outstanding - basic (in shares) | 131,612,881 | 114,054,434 |
Effect of dilutive securities - performance units (in shares) | 145,863 | 259,897 |
Weighted average shares of common stock outstanding - diluted (in shares) | 131,758,744 | 114,314,331 |
Earnings per share — Basic | ||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.19 | $ 0.09 |
Earnings per share — Diluted | ||
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.19 | $ 0.09 |
Earnings Per Share - TSR Performance Percentile (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period | 3 years |
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