10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36008

Rexford Industrial Realty, Inc.

(Exact name of registrant as specified in its charter)

MARYLAND	46-2024407
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11620 Wilshire Boulevard, Suite 1000, Los Angeles, California	90025
(Address of principal executive offices)	(Zip Code)

(310) 966-1680

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer þ Non-accelerated filer ¨ Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ

The number of shares of common stock outstanding at May 6, 2015 was 55,352,752.

REXFORD INDUSTRIAL REALTY, INC.

QUARTERLY REPORT FOR THE THREE MONTHS ENDED MARCH 31, 2015

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
	Item 1	Financial Statements
		Consolidated Balance Sheets as of March 31, 2015 (unaudited)  and December 31, 2014	3
		Consolidated Statements of Operations for the Three Months Ended March 31, 2015 and 2014 (unaudited)	4
		Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2015 and 2014 (unaudited)	5
		Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2015 (unaudited)	6
		Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2015 and 2014 (unaudited)	7
		Notes to the Consolidated Financial Statements	8
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	46
	Item 4	Controls and Procedures	46
PART II.	OTHER INFORMATION
	Item 1	Legal Proceedings	47
	Item 1A	Risk Factors	47
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	47
	Item 3	Defaults Upon Senior Securities	47
	Item 4	Mine Safety Disclosures	47
	Item 5	Other Information	47
	Item 6	Exhibits	48
	Signatures		49

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

REXFORD INDUSTRIAL REALTY, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31, 2015			December 31, 2014
ASSETS
Land	$	392,594,000		$	368,033,000
Buildings and improvements		570,688,000			540,837,000
Tenant improvements		22,417,000			21,404,000
Furniture, fixtures, and equipment		188,000			188,000
Total real estate held for investment		985,887,000			930,462,000
Accumulated depreciation		(83,140,000	)		(76,884,000	)
Investments in real estate, net		902,747,000			853,578,000
Cash and cash equivalents		47,541,000			8,606,000
Note receivable		13,135,000			13,137,000
Rents and other receivables, net		1,892,000			1,812,000
Deferred rent receivable, net		5,520,000			5,165,000
Deferred leasing costs, net		3,744,000			3,608,000
Deferred loan costs, net		1,895,000			2,045,000
Acquired lease intangible assets, net		26,504,000			28,136,000
Acquired indefinite-lived intangible		5,271,000			5,271,000
Other assets		5,534,000			4,699,000
Acquisition related deposits		250,000			2,110,000
Investment in unconsolidated real estate entities		4,013,000			4,018,000
Total Assets	$	1,018,046,000		$	932,185,000
LIABILITIES & EQUITY
Liabilities
Notes payable	$	269,541,000		$	356,362,000
Interest rate swap liability		3,279,000			1,402,000
Accounts payable, accrued expenses and other liabilities		11,566,000			10,053,000
Dividends payable		6,639,000			5,244,000
Acquired lease intangible liabilities, net		2,903,000			3,016,000
Tenant security deposits		9,112,000			8,768,000
Prepaid rents		1,144,000			1,463,000
Total Liabilities		304,184,000			386,308,000
Equity
Rexford Industrial Realty, Inc. stockholders' equity
Common Stock, $0.01 par value 490,000,000 authorized and 55,329,363 and 43,702,442 outstanding as of March 31, 2015 and December 31, 2014, respectively		549,000			434,000
Additional paid in capital		719,199,000			542,318,000
Cumulative distributions in excess of earnings		(28,235,000	)		(21,673,000	)
Accumulated other comprehensive loss		(3,147,000	)		(1,331,000	)
Total stockholders' equity		688,366,000			519,748,000
Noncontrolling interests		25,496,000			26,129,000
Total Equity		713,862,000			545,877,000
Total Liabilities and Equity	$	1,018,046,000		$	932,185,000

The accompanying notes are an integral part of these consolidated financial statements.

3

REXFORD INDUSTRIAL REALTY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended March 31,
	2015		2014
RENTAL REVENUES
Rental revenues	$	18,557,000	$	11,628,000
Tenant reimbursements		2,184,000		1,511,000
Management, leasing and development services		132,000		234,000
Other income		190,000		42,000
TOTAL RENTAL REVENUES		21,063,000		13,415,000
Interest income		277,000		276,000
TOTAL REVENUES		21,340,000		13,691,000
OPERATING EXPENSES
Property expenses		5,771,000		4,134,000
General and administrative		3,546,000		2,605,000
Depreciation and amortization		9,884,000		6,130,000
TOTAL OPERATING EXPENSES		19,201,000		12,869,000
OTHER EXPENSE
Acquisition expenses		233,000		333,000
Interest expense		1,826,000		1,251,000
TOTAL OTHER EXPENSE		2,059,000		1,584,000
TOTAL EXPENSES		21,260,000		14,453,000
Equity in income from unconsolidated real estate entities		1,000		45,000
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		81,000		(717,000	)
DISCONTINUED OPERATIONS
Income from discontinued operations before gain on sale of real estate		-		21,000
Gain on sale of real estate		-		2,125,000
INCOME FROM DISCONTINUED OPERATIONS		-		2,146,000
NET INCOME	$	81,000	$	1,429,000
NET INCOME ATTRIBUTABLE TO:
Rexford Industrial Realty, Inc. common stockholders	$	27,000	$	1,261,000
Noncontrolling interests		4,000		152,000
Participating securities		50,000		16,000
NET INCOME	$	81,000	$	1,429,000
Income (loss) from continuing operations available to common stockholders per share - basic and diluted	$	-	$	(0.03	)
Net income available to common stockholders per share - basic and diluted	$	-	$	0.05
Weighted average shares of common stock outstanding - basic and diluted		50,683,528		25,419,418
Dividends declared per common share	$	0.12	$	0.12

The accompanying notes are an integral part of these consolidated financial statements.

4

REXFORD INDUSTRIAL REALTY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

	Three Months Ended March 31,
	2015			2014
Net income	$	81,000		$	1,429,000
Other comprehensive income (loss): cash flow hedge adjustment		(1,877,000	)		300,000
Comprehensive income (loss)		(1,796,000	)		1,729,000
Less: comprehensive (income) loss attributable to noncontrolling interests		57,000			(183,000	)
Comprehensive income (loss) attributable to common stockholders	$	(1,739,000	)	$	1,546,000

The accompanying notes are an integral part of these consolidated financial statements.

5

REXFORD INDUSTRIAL REALTY, INC.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)

	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 January 1, 2015		43,702,442		434,000		542,318,000			(21,673,000	)		(1,331,000	)		519,748,000			26,129,000			545,877,000
Issuance of common stock		11,500,000		115,000		183,885,000			-			-			184,000,000			-			184,000,000
Offering costs		-		-		(7,668,000	)		-			-			(7,668,000	)		-			(7,668,000	)
Share-based compensation		100,263		-		367,000			-			-			367,000			-			367,000
Conversion of units to common stock		26,658		-		297,000			-			-			297,000			(297,000	)		-
Net income		-		-		-			77,000			-			77,000			4,000			81,000
Other comprehensive loss		-		-		-						(1,816,000	)		(1,816,000	)		(61,000	)		(1,877,000	)
Dividends		-		-		-			(6,639,000	)		-			(6,639,000	)		-			(6,639,000	)
Distributions		-		-		-			-			-			-			(279,000	)		(279,000	)
Balance at March 31, 2015		55,329,363	$	549,000	$	719,199,000		$	(28,235,000	)	$	(3,147,000	)	$	688,366,000		$	25,496,000		$	713,862,000

The accompanying notes are an integral part of these consolidated financial statements.

6

REXFORD INDUSTRIAL REALTY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended March 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	81,000		$	1,429,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of unconsolidated real estate entities		(1,000	)		(45,000	)
Depreciation and amortization		9,884,000			6,130,000
Depreciation and amortization included in discontinued operations		-			7,000
Amortization of above (below) market lease intangibles, net		39,000			81,000
Accretion of discount on notes receivable		(69,000	)		(64,000	)
Gain on sale of real estate included in discontinued operations		-			(2,125,000	)
Amortization of loan costs		209,000			129,000
Accretion of premium on notes payable		(92,000	)		(11,000	)
Equity based compensation expense		348,000			172,000
Change in working capital components:
Rents and other receivables		(80,000	)		(325,000	)
Deferred rent receivable		(365,000	)		(184,000	)
Change in restricted cash		-			-
Leasing commissions		(492,000	)		(336,000	)
Other assets		(927,000	)		(1,985,000	)
Accounts payable, accrued expenses and other liabilities		1,508,000			835,000
Tenant security deposits		137,000			462,000
Prepaid rent		(405,000	)		(1,014,000	)
Net cash provided by operating activities		9,775,000			3,156,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of investments in real estate		(46,705,000	)		(32,339,000	)
Capital expenditures		(4,487,000	)		(1,594,000	)
Acquisition related deposits		1,860,000			(40,000	)
Contributions to unconsolidated real estate entities		-			(105,000	)
Distributions from unconsolidated real estate entities		6,000			14,000
Change in restricted cash		-			(27,000	)
Principal repayments of notes receivable		71,000			68,000
Disposition of investment in real estate		-			13,790,000
Net cash used in investing activities		(49,255,000	)		(20,233,000	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		184,000,000			-
Offering costs		(7,400,000	)		(6,000	)
Proceeds from notes payable		23,500,000			24,500,000
Repayment of notes payable		(116,098,000	)		(4,062,000	)
Deferred loan costs		(64,000	)		(8,000	)
Dividends paid to common stockholders		(5,244,000	)		(5,368,000	)
Distributions paid to common unitholders		(279,000	)		(632,000	)
Net cash provided by financing activities		78,415,000			14,424,000
Increase (decrease) in cash and equivalents		38,935,000			(2,653,000	)
Cash and cash equivalents, beginning of period		8,606,000			8,997,000
Cash and cash equivalents, end of period	$	47,541,000		$	6,344,000
Supplemental disclosure of cash flow information:
Cash paid for interest (net of capitalized interest of $10,000 and $0 for the three months ended March 31, 2015 and 2014, respectively)	$	2,622,000		$	1,178,000
Supplemental disclosure of noncash investing and financing transactions:
Assumption of loan in connection with acquisition of real estate	$	5,401,000		$	-
Capital expenditure accruals	$	1,028,000		$	-
Accrual of dividends	$	6,639,000		$	5,244,000
Accrual of offering costs	$	268,000		$	-

The accompanying notes are an integral part of these consolidated financial statements.

7

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. 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 primarily located in Southern California infill markets.  As of March 31, 2015, our consolidated portfolio consisted of 102 properties with approximately 10.3 million rentable square feet.  We also own a 15% interest in a joint venture that owns one property with approximately 0.5 million square feet, which we also manage.   In addition, we currently manage an additional 19 properties with approximately 1.2 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).

Basis of Presentation

As of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the U.S. 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, 2015. The interim financial statements should be read in conjunction with the combined and consolidated financial statements in our 2014 Annual Report on Form 10-K and the notes thereto. Certain prior period amounts have been reclassified to conform to current period presentation. 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.

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.

We consolidate all entities that are wholly owned and those in which we own less than 100% but control, as well as any variable interest entities in which we are the primary beneficiary. We evaluate our ability to control an entity and whether the entity is a variable interest entity and we are the primary beneficiary through consideration of the substantive terms of the arrangement to identify which enterprise has the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Investments in entities in which we do not control but over which we have the ability to exercise significant influence over operating and financial policies are presented under the equity method. Investments in entities that we do not control and over which we do not exercise significant influence are carried at the lower of cost or fair value, as appropriate. Our ability to correctly assess our influence and/or control over an entity affects the presentation of these investments in our consolidated financial statements.

2. Summary of Significant Accounting Policies

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.

8

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Discontinued Operations

On April 14, 2014, the FASB issued Accounting Standards Update 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”).  Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 further expands the disclosure requirements for disposals that meet the definition of a discontinued operation, and requires entities to disclose information about disposals of individually significant components.  We elected to adopt ASU 2014-08 early, beginning in the fiscal quarter ended September 30, 2014.  The adoption of ASU 2014-08 has and will likely result in fewer property sales being classified as discontinued operations.

During the three months ended March 31, 2014, we sold two of our operating properties.  As these properties were sold and classified as held for sale prior to the adoption of ASU 2014-08, the revenues and expenses of these properties are reported as discontinued operations in the consolidated statements of operations for all periods presented through the date of the disposition.  Furthermore, the gain (loss) on sale of these properties is reported as discontinued operations in the consolidated statements of operations in the period the properties are sold. See Note 13.

Investment in Real Estate

Acquisitions

When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities.  The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year.

We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use, such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information.  

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 costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred.

The difference between the fair value and the face value of debt assumed 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 is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date.

For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs.  We capitalized $36,000 and $42,000 in acquisition costs during the three months ended March 31, 2015 and 2014, respectively.  See Note 3.

Capitalization of Costs

We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize interest, insurance, real estate taxes and certain general and administrative costs, including direct payroll, bonus and noncash equity compensation, of the personnel performing development, renovations,

9

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets.

Depreciation and Amortization

Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs 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 regards 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. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized.

The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements.

As discussed above in investments in real estate, 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 intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term.

Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.

Impairment of Long-Lived Assets

In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, 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. In order 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.

Investment in Unconsolidated Real Estate

Investments in unconsolidated real estate in which we have the ability to exercise significant influence (but not control) are accounted for under the equity method of investment.  Under the equity method, we initially record our investment at cost, and subsequently adjust for equity in earnings or losses and cash contributions and distributions. Any difference between the carrying amount of these investments on the balance sheet and the underlying equity in net assets is amortized as an adjustment

10

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

to equity in income (loss) from unconsolidated real estate over the life of the related asset. Under the equity method of accounting, our net equity investment is reflected within the consolidated balance sheets, and our share of net income or loss from the joint ventures is included within the consolidated statements of operations.  See Note 12.

Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (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 that we derive from our REIT qualifying activities. 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 income tax at regular corporate rates, 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 (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014.

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, 2015 and December 31, 2014, we have not established a liability for uncertain tax positions.

Derivative Instruments and Hedging Activities

FASB 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 8.

Revenue Recognition

We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Estimated reimbursements from tenants for real estate taxes, 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. Lease termination fees, which are included in rental revenues in the accompanying consolidated statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant.

Revenues from management, leasing and development services are recognized when the related services have been provided and earned.

The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions.

Valuation of Receivables

We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. 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. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We recorded a provision for doubtful accounts of approximately $0.4 million and $0.4 million for the three months ended March 31, 2015 and 2014, respectively, as a reduction to rental revenues in our consolidated statements of operations. We had a $1.3 million and $1.0 million reserve for allowance for doubtful accounts as of March 31, 2015 and December 31, 2014, respectively.

Equity Based Compensation

We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation.  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.  The total compensation expense for these awards is based upon the fair market value of the shares on the grant date, adjusted for estimated forfeitures.  See Note 14.

Equity Offering Costs

Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in capital.

Earnings Per Share

We calculate earnings per share (“EPS”) in accordance with ASC 260 – Earnings Per Share (“ASC 260”).  Under ASC 260, shares of unrestricted stock that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing 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 shares of common stock outstanding for the period. Diluted EPS is computed using the weighted average shares of common

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15.

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.

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs.

On April 7, 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (“ASU 2015-03”).  ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be 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. ASU 2015-03 is effective for annual and interim periods beginning on or after December 15, 2015, with early adoption permitted on a retrospective basis.  We have elected to adopt ASU 2015-03 early, beginning with the current quarter ended March 31, 2015.  As a result of the adoption of ASU 2015-03, we have reclassified approximately $0.7 million of net debt issuance costs from an asset (previously recorded in the line item “Deferred loan costs, net” in the consolidated balance sheets) to a reduction in the carrying amount of our notes payable as of December 31, 2014.  ASU 2015-03 also expands disclosure requirements to include the face amount of the debt liability and the effective interest rate in the notes to the consolidated financial statements.  See Note 6.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 requires reporting entities to evaluate whether they should consolidate certain legal entities.  ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This ASU affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We are currently assessing the potential impact that the adoption of the ASU 2015-02 will have on our consolidated financial statements.

On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”).  ASU 2014-09 establishes principles for reporting the nature, amount, timing and uncertainty of revenues and cash flows arising from an entity's contracts with customers. The core principle of the new standard is that an entity recognizes revenue to represent the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us in the first quarter of 2017 and will replace most existing revenue recognition guidance within GAAP. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating ASU 2014-09 to determine its impact on our consolidated financial statements and related disclosures, as well as the transition method to apply the new standard.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

3. Investments in Real Estate

The following table sets forth the wholly-owned industrial properties we acquired during the three months ended March 31, 2015:

Property	Submarket	Date of Acquisition	Square Feet		Number of Buildings	Purchase Price
8902-8940 Activity Road(1)	San Diego - Central	1/21/2015		112,501	5	$	18,450,000
12907 Imperial Highway(2)	Los Angeles - Mid-counties	1/21/2015		101,080	1		12,180,000
1210 North Red Gum Street(3)	Orange County - North	3/9/2015		64,570	1		7,650,000
9401 De Soto Avenue(3)	Los Angeles - San Fernando Valley	3/18/2015		150,263	1		14,075,000
Total 2015 Wholly-Owned Property Acquisitions				428,414	8	$	52,355,000

(1) This acquisition was funded with borrowings under our unsecured revolving credit facility.

(2) This acquisition was funded as follows: (i) $5.4 million from the assumption of secured debt; (ii) $2.1 million from a deposit paid during the fourth quarter of 2014 and (iii) borrowings under our unsecured revolving credit facility. The assumed debt was recorded at fair value on the acquisition date, resulting in a premium of approximately $0.5 million.    

(3) This acquisition was funded with available cash on hand.

     The following table summarizes the preliminary allocation of the purchase price paid for the acquired assets and liabilities assumed of the properties in the table above as of the date of acquisition:

	Total 2015 Acquisitions
Assets:
Land(1)	$	24,554,000
Buildings and improvements		25,945,000
Tenant improvements		620,000
Acquired lease intangible assets(2)		1,950,000
Other acquired assets(4)		82,000
Total assets acquired		53,151,000
Liabilities:
Acquired lease intangible liabilities(3)		212,000
Notes payable		5,874,000
Other assumed liabilities(4)		360,000
Total liabilities assumed		6,446,000
Net assets acquired	$	46,705,000

(1) The allocation to land includes $29,000 of capitalized acquisition costs related to the purchase of 9401 De Soto Avenue, which was accounted for as an asset acquisition.

(2) Represents $1,918,000 and $32,000 of in-place leases and above-market leases with a weighted average amortization period of 3.2 years and 3.0 years, respectively.

(3) Represents below-market leases with a weighted average amortization period of 4.1 years.

(4) Includes other working capital assets acquired and liabilities assumed, respectively, at the time of acquisition.

The preliminary allocation of the purchase price is based upon a preliminary valuation and our estimates and assumptions are subject to change within the purchase price allocation period (generally one year from the acquisition date).

The following table sets forth the unaudited results of operations for the three months ended March 31, 2015, for each of the properties acquired during the three months ended March 31, 2015, included in the consolidated statement of operations from the date of acquisition:

	Three Months Ended March 31, 2015
Revenues	$	469,000
Net Income	$	6,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following table sets forth unaudited pro-forma financial information for the three months ended March 31, 2015 and 2014, as if the closing of our acquisitions during the three months ended March 31, 2015, had occurred on January 1, 2014. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions, and increased interest expense for borrowings associated with these acquisitions.  These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2014 and may not be indicative of future operating results.

	Three Months Ended March 31,
	2015		2014
Revenues	$	21,586,000	$	14,133,000
Net operating income	$	15,311,000	$	9,532,000
Net income	$	226,000	$	930,000

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

4. Intangible Assets

The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows:

	March 31, 2015			December 31, 2014
Acquired Lease Intangible Assets:
In-place lease intangibles	$	39,385,000		$	37,467,000
Accumulated amortization		(16,193,000	)		(12,975,000	)
In-place lease intangibles, net		23,192,000			24,492,000
Above-market tenant leases		5,002,000			4,971,000
Accumulated amortization		(1,690,000	)		(1,327,000	)
Above-market tenant leases, net		3,312,000			3,644,000
Acquired lease intangible assets, net	$	26,504,000		$	28,136,000
Acquired Lease Intangible Liabilities:
Below-market tenant leases		(3,726,000	)		(3,514,000	)
Accumulated accretion		1,060,000			743,000
Below-market tenant leases, net		(2,666,000	)		(2,771,000	)
Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		53,000			45,000
Above-market ground lease, net		(237,000	)		(245,000	)
Acquired lease intangible liabilities, net	$	(2,903,000	)	$	(3,016,000	)

The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the reported periods noted below:

	Three Months Ended March 31,
	2015			2014
In-place lease intangibles (1)	$	3,218,000		$	2,086,000
Net above (below) market tenant leases (2)	$	47,000		$	88,000
Above-market ground lease (3)	$	(8,000	)	$	(8,000	)

(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 above/(below)-market tenant leases is recorded as a decrease to rental revenues in the consolidated statements of operations for the periods presented.

(3) The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated statements of operations for the periods presented.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

5. Note Receivable

As of March 31, 2015 and December 31, 2014, we have one mortgage note receivable, which is secured by an industrial property located at 32401-32803 Calle Perfecto in San Juan Capistrano (the “Calle Perfecto Note”).  The Calle Perfecto Note is a 30-year amortizing loan which bears interest at a fixed rate of 6.001% and matures on May 1, 2017.  

The following table summarizes the balance of our notes receivable:

	March 31, 2015			December 31, 2014
Face Amount	$	13,825,000		$	13,896,000
Unrecognized Accretable Yield		(690,000	)		(759,000	)
Note Receivable	$	13,135,000		$	13,137,000

6. Notes Payable

The following table summarizes the balance of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015			December 31, 2014
Principal amount	$	269,879,000		$	357,076,000
Less: unamortized discount and deferred loan costs		(338,000	)		(714,000	)
Carrying value	$	269,541,000		$	356,362,000

The following table summarizes the components and significant terms of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Principal Amount		Unamortized Discount and Deferred Loan Costs			Principal Amount		Unamortized Discount and Deferred Loan Costs			Contractual Maturity Date		Contractual Interest Rate			Effective Interest Rate (1)
Fixed Rate Debt
The Park	$	3,141,000	$	(159,000	)	$	3,173,000	$	(161,000	)	3/1/2031			5.125%	(2)		5.36	%
2980 San Fernando		10,105,000		70,000			10,153,000		139,000		7/1/2015			5.088%	(3)		2.33	%
12907 Imperial Highway		5,383,000		390,000			-		-		4/1/2018			5.950%	(4)		3.85	%
Variable Rate Debt									-
RIF V - Glendale Commerce Center, LLC		42,750,000		-			42,750,000		-		5/1/2016	(5)	LIBOR + 2.00%				2.18	%
Term Loan (6)		60,000,000		(342,000	)		60,000,000		(362,000	)	8/1/2019	(7)	LIBOR + 1.90%				2.21	%
Term Loan (8)		48,500,000		(297,000	)		48,500,000		(330,000	)	6/24/2017	(7)	LIBOR + 1.55%				2.00	%
Unsecured Term Loan Facility		100,000,000		-			100,000,000		-		6/11/2019		LIBOR + 1.35%				1.53	%
Unsecured Credit Facility				-					-
Unsecured Credit Facility		-		-			92,500,000		-		6/11/2018	(7)	LIBOR + 1.40%		(9)		0.00	%
Total	$	269,879,000	$	(338,000	)	$	357,076,000	$	(714,000	)

(1)     Reflects the effective interest rate at March 31, 2015 and includes the effect of amortization of discounts/premiums and deferred loan costs.

(2)     Monthly payments of interest and principal based on 20-year amortization table.

(3)     Monthly payments of interest and principal based on 30-year amortization table.

(4)     Monthly payments of interest and principal based on 30-year amortization table, with a balloon payment at maturity.

(5)     Two additional one year extensions available at the borrower’s option.

(6)  Loan is secured by six properties. As of March 31, 2015, $30 million of this $60 million variable-rate term loan has been effectively fixed through the use of an interest rate swap. See Note 8.

(7)     One additional one year extension available at the borrower’s option.

(8)     Loan is secured by eight properties.

(9)     The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the unsecured revolving credit facility if the balance is under $100 million or over $100 million, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On January 21, 2015, in connection with the acquisition of the property located at 12907 Imperial Highway, we assumed a mortgage loan that is secured by the property.  The assumed mortgage loan had a principal balance of $5.4 million at the acquisition date and was recorded at fair value at the date of acquisition resulting in an initial debt premium of $473,000.  The loan, which was put in place in 2008 by the seller, bears interest at a fixed rate of 5.95% with amortization over 30 years, and has a maturity date of April 1, 2018.

The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt discounts/premiums and deferred loan costs, as of March 31, 2015 and does not consider extension options available to us as noted above:

April 1, 2015 - December 31, 2015	$	10,286,000
2016		43,002,000
2017		48,766,000
2018		5,208,000
2019		160,158,000
Thereafter		2,459,000
Total	$	269,879,000

Unsecured Credit Facility

We have a senior unsecured revolving credit facility with borrowing capacity of $200.0 million (the “Revolver”) and a senior unsecured term loan facility (the “Term Loan Facility”) with borrowing capacity of $100.0 million (together the “Credit Facility”).  The Revolver is scheduled to mature on June 11, 2018 with one 12-month extension option available, subject to certain conditions, and the Term Loan Facility is scheduled to mature on June 11, 2019.  The aggregate principal amount of the Credit Facility may be increased to a total of up to $600.0 million, which may be comprised of additional revolving commitments under the Revolver or an increase to the Term Loan Facility, or any combination of the foregoing, subject to the satisfaction of specified conditions and the identification of lenders willing to make available such additional amounts.

Interest on the Credit Facility is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greater of (a) the federal funds rate plus 0.50%, (b) the administrative agent’s prime rate or (c) the thirty-day LIBOR plus 1.00%, plus the applicable base rate margin. Until we attain an investment grade rating by two or more of Standard & Poor’s, Moody’s Investor Services and Fitch Ratings, the applicable LIBOR margin will range from1.30% to 1.90% for the Revolver and 1.25% to 1.85% for the Term Loan Facility, depending on the our Leverage Ratio (as defined in the credit agreement). In February 2015, the Revolver and the Term Loan Facility were assigned an investment grade rating of BBB- by Fitch Ratings. Additionally, there is a quarterly facility fee that is paid on the undrawn portion of the Revolver in an amount equal to 0.20% or 0.30% depending on the undrawn amount of the Revolver.

The Credit Facility is guaranteed by the Company and by substantially all of the current and future subsidiaries of the Operating Partnership that own an unencumbered property. The Credit Facility is not secured by the Company’s properties or by equity interests in the subsidiaries that hold such properties.

The Revolver and the Term Loan Facility may be voluntarily prepaid in whole or in part at any time without premium or penalty.  Amounts borrowed under the Term Loan Facility and repaid or prepaid may not be re-borrowed.

The Credit Facility 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 Facility 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 Facility, 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.  We believe we are currently in compliance with all of the financial covenants required by our loan agreements.

On March 31, 2015, we did not have any outstanding borrowings under our Revolver, leaving $200.0 million available for additional borrowings.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Debt Covenants

The Credit Facility includes a series of financial and other covenants that we must comply with in order to borrow under the Credit Facility.  These include 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%;

· Maintaining a ratio of secured debt to total asset value of not more than 45%;

· Maintaining a ratio of total recourse debt to total asset value of not more than 15%;

· Maintaining a minimum tangible net worth of at least the sum of (i) $283,622,250, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after March 31, 2014;

· Maintaining a ratio of adjusted EBITDA to fixed charges of at least 1.50 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 to unsecured interest expense of at least 1.75 to 1.0. 

Additionally, the Credit Facility provides 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.

In addition to our Credit Facility, certain of our other loan agreements contain financial covenants to be tested quarterly.  The Glendale Commerce Center loan and our $60.0 million term loan both require a minimum Debt Service Coverage Ratio (as defined in their respective loan agreements) of at least 1.10 to 1.00.  

We believe we are in compliance with all of the financial covenants required by our loan agreements as of March 31, 2015.

7. Operating Leases

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses. Operating expense reimbursements are reflected in the consolidated statements of operations as tenant reimbursements.

Future minimum base rent under operating leases as of March 31, 2015 is summarized as follows:

Twelve months ending March 31:
2016	$	69,620,000
2017		50,777,000
2018		33,894,000
2019		23,121,000
2020		16,988,000
Thereafter		21,799,000
Total	$	216,199,000

The future minimum base rent in the table above excludes tenant reimbursements, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles.

8. Interest Rate Contracts

Risk Management Objective of Using Derivatives

We are exposed to certain risk 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

duration of our debt funding and 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 amount. We do not use derivatives for trading or speculative purposes.

The effective portion of the change in fair value of derivatives designated and qualifying as cash flow hedges is initially recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  The ineffective portion of the change in fair value of the derivatives is immediately recognized in earnings.  

On February 4, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our existing $60.0 million variable-rate term loan.  Each of the two swaps has a notional value of $30.0 million. We are required to make certain monthly fixed rate payments calculated on notional amounts of $30.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount.  The first forward swap will effectively fix the annual interest rate payable on $30.0 million of debt at 3.726% for the period from January 15, 2015 to February 15, 2019. The second forward swap will effectively fix the annual interest rate payable on the other $30.0 million of debt at 3.91% for the period from July 15, 2015 to February 15, 2019.

On August 19, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our $100.0 million Term Loan Facility.  Each of the two swaps has a notional value of $50.0 million.  The first swap has an effective date of August 14, 2015 and a maturity date of December 14, 2018.  The second swap has an effective date of February 16, 2016 and a maturity date of December 14, 2018.  We are required to make certain monthly fixed rate payments calculated on notional amounts of $50.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount.  The interest rate swaps will effectively fix the annual interest rate payable on our Term Loan Facility at 1.79% for the first swap and 2.005% for the second swap, plus an applicable margin under the terms of the Credit Facility.  

The following table sets forth a summary of our interest rate swaps at March 31, 2015 and December 31, 2014:

						Fair Value(1)				Notional Amount in Effect
Derivative Instrument	Effective Date	Maturity Date	Interest Strike Rate			March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Liabilities:
Interest Rate Swap	1/15/2015	2/15/2019		1.826	%	$	749,000	$	457,000	$	30,000,000	$	-
Interest Rate Swap	7/15/2015	2/15/2019		2.010	%	$	792,000	$	408,000	$	-	$	-
Interest Rate Swap	8/14/2015	12/14/2018		1.790	%	$	900,000	$	277,000	$	-	$	-
Interest Rate Swap	2/16/2016	12/14/2018		2.005	%	$	838,000	$	260,000	$	-	$	-

(1) We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities.  As of March 31, 2015 and December 31, 2014, 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 consolidated balance sheets.

20

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The following table sets forth the impact of our interest rate swaps on our consolidated statements of operations for the periods presented:

	Three Months Ended March 31,
	2015			2014
Interest Rate Swaps in Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in AOCI on derivatives (effective portion)	$	(1,982,000	)	$	300,000
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)		(105,000	)		-
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)		-			-

During the next twelve months, we estimate that an additional $1,307,000 will be reclassified from AOCI as an increase to interest expense.

Credit-risk-related Contingent Features

Certain of our agreements with our derivative counterparties that 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.

As of March 31, 2015, the fair value of interest rate swaps in a net liability position, which excludes any adjustment for nonperformance risk related to these agreements, was $3,368,000.  As of March 31, 2015, we have not posted any collateral related to these agreements.

9. 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.

21

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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, 2015, 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, 2015 and December 31, 2014, which we measure on a recurring basis by level within the fair value hierarchy.  

	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)
Interest Rate Swaps at:
March 31, 2015	$	(3,279,000	)	$	-	$	(3,279,000	)	$	-
December 31, 2014	$	(1,402,000	)	$	-	$	(1,402,000	)	$	-

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 currently available market rates, adjusted with a credit spread, and assuming the loans are outstanding through contractual maturity date.

22

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2015 and December 31, 2014:

	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, 2015	$	270,377,000	$	-	$	-	$	270,377,000	$	269,541,000
December 31, 2014	$	357,212,000	$	-	$	-	$	357,212,000	$	356,362,000

10. Related Party Transactions

Howard Schwimmer

We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management and development 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 $55,000 and $53,000 for the three months ended March 31, 2015 and 2014, respectively, in management, leasing and development services revenue.  

11. Commitments and Contingencies

Legal

From time to time, we are subject to various legal proceedings that arise in the ordinary course of business.

On October 3, 2013, two pre-IPO investors filed a putative class action purportedly brought on behalf of the investors in RIF III in the Los Angeles County Superior Court. On February 14, 2014, a First Amended Complaint was filed adding an additional individual pre-IPO investor and putative class claims on behalf of investors in RIF IV.  This complaint also alleged that the communication of the proposed accommodation (in which Messrs. Schwimmer, Frankel and Ziman, together with certain other pre-IPO owners of the pre-IPO management companies agreed to return up to $32.1 million that they received in connection with our IPO and formation transactions) was materially misleading by not including disclosures regarding the lawsuit and claims asserted by plaintiffs.  On July 15, 2014, a Second Amended Complaint was filed withdrawing the class action allegations and the allegations concerning communication of the accommodation, and adding four additional plaintiff investors. During the third quarter of 2014, the Company entered into settlement agreements with three of these four additional plaintiffs.  The aggregate amounts paid by the Company in these settlements were not material. Plaintiffs asserted claims against the Company, RIF III, RIF IV, RILLC and Messrs. Schwimmer, Frankel and Ziman for breach of fiduciary duty, violation of certain California securities laws, negligent misrepresentation, and fraud. Plaintiffs alleged, among other things, that the terms of the Company’s formation transactions were unfair to investors in RIF III and RIF IV, that the consideration received by investors in RIF III and RIF IV in the formation transactions was inadequate, that the pre-IPO management companies were allocated unfair value in the formation transactions and that the disclosure documents related to the formation transactions were materially misleading.  Plaintiffs also requested to inspect the books and records of RIF III and RIF IV, which entities no longer exist, and further sought declaratory relief, unspecified recessionary damages, disgorgement, compensatory, punitive and exemplary damages, an accounting for unjust enrichment, and an award of costs including pre-judgment interest, attorneys’ and experts’ fees, and other unspecified relief. Defendants answered the Second Amended Complaint denying all allegations and asserting affirmative defenses.  During the second quarter of 2015, the Company entered into a settlement agreement with the remaining plaintiffs.  The aggregate amount paid by the Company in this settlement was not material.

23

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Environmental

We generally will 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 estimable, we record a liability.

On February 25, 2014, we acquired the property located at West 228th Street.  Before purchasing the property, during the due diligence phase, we engaged with a third party environmental consultant to perform various environmental site assessments to determine the presence of any environmental contaminants that might warrant remediation efforts. Based on their investigation, they determined that hazardous substances existed at the property and that additional assessment and remediation work would likely be required to satisfy regulatory requirements.  The total remediation costs were estimated to be $1.3 million.

To address the estimated costs associated with the environmental issues at the West 228^th Street property, we entered into an Environmental Holdback Escrow Agreement (the “Holdback Agreement”) with the former owner, whereby $1.3 million of the purchase price, which would have otherwise been paid to the former owner, was to be placed into an escrow account to be used to pay remediation costs.  In addition, we also funded $100,000 into the escrow account.  According to the Holdback Agreement, the seller has no liability or responsibility to pay for remediation costs in excess of $1.3 million.

As of March 31, 2015 and December 31, 2014, we have a $1.2 million contingent liability recorded in our consolidated balance sheets included in the line item “Accounts payable accrued expenses and other liabilities”, reflecting the estimated remaining cost to remediate environmental liabilities that existed prior to the acquisition date.  As of March 31, 2015 and December 31, 2014, we also have a $1.2 million corresponding indemnification asset recorded in our consolidated balance sheets included in the line item “Other assets”, reflecting the estimated costs we expect the former owner to cover pursuant to the Holdback Agreement.  

We expect that the resolution of the environmental matters relating to the above will not have a material impact on our consolidated financial condition, results of operations or cash flows.  However, we cannot assure you 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.

Rent Expense

As of March 31, 2015, we lease a parcel of land that is currently being sub-leased to a tenant for a parking lot.  The ground lease is scheduled to expire on June 1, 2062.  

The future minimum commitment under our ground lease and corporate office lease as of March 31, 2015 is as follows:

	Office Lease		Ground Rent
April 1, 2015 - December 31, 2015	$	337,000	$	108,000
2016		520,000		144,000
2017		542,000		144,000
2018		559,000		144,000
2019		337,000		144,000
Thereafter		-		6,108,000
Total	$	2,295,000	$	6,792,000

Tenant and Construction Related

As of March 31, 2015, we had commitments of approximately $4.1 million for tenant improvement and construction work under the terms of leases with certain of our tenants and contractual agreements with our construction vendors.

24

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

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, 2015, 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.

As of March 31, 2015, 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.

As of March 31, 2015, our 10 largest tenants represented approximately 14% of our annualized base rent, which is based on the monthly contracted base rent from leases in effect as of March 31, 2015, multiplied by 12, excluding billboard and antenna revenue and rent abatements.   During the three months ended March 31, 2015, no single tenant accounted for more than 10% of our rental revenues.

12. Investment in Unconsolidated Real Estate

We currently manage and hold a 15% equity interest in a joint venture (“the JV”) that indirectly owns one property located at 3233 Mission Oaks Boulevard in Ventura County.  We account for this investment under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments, if applicable).

The following tables present combined summarized financial information of our unconsolidated joint venture properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share, unless otherwise noted:

	Rexford Industrial Realty, Inc.
	March 31, 2015			December 31, 2014
Assets	$	23,664,000		$	23,542,000
Liabilities		(1,355,000	)		(1,274,000	)
Partners'/members' equity	$	22,309,000		$	22,268,000
Company's share of equity	$	3,346,000		$	3,340,000
Basis adjustment(1)		667,000			678,000
Carrying value of the Company's investment in unconsolidated real estate	$	4,013,000		$	4,018,000

(1) This amount represents the difference between our historical cost basis and the basis reflected at the joint venture level, resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013.

	Three Months Ended March 31,
	2015			2014
Revenues	$	663,000		$	1,812,000
Expenses		(622,000	)		(1,605,000	)
Net income	$	41,000		$	207,000

Fees and commissions earned from managing the JV are included in “Management, leasing and development services” in the consolidated statements of operations.  We recorded $44,000 and $139,000 for the three months ended March 31, 2015 and 2014, respectively, in management, leasing and development services revenue.

25

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

13. Discontinued Operations

Dispositions

We did not have any dispositions during the three months ended March 31, 2015.  The table below summarizes the properties sold during the three months ended March 31, 2014.

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Gain (Loss) Recorded (1)
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	(137,000	)

(1) The results of operations and the gain or loss on sale of these properties is reported under Discontinued Operations in the consolidated statements of operations.

Discontinued Operations

Discontinued operations for the three months ended March 31, 2014 includes the results of operations (prior to disposition) and the gain (loss) on sale of real estate of the two properties in the table above.  The following table summarizes the main components of income from discontinued operations for the three months ended March 31, 2014.

	Three Months Ended March 31, 2014
Revenues	$	85,000
Operating expenses		(57,000	)
Depreciation and amortization expense		(7,000	)
Gain on sale of real estate		2,125,000
Income from discontinued operations	$	2,146,000

14. Equity

Common Stock

On February 3, 2015, we completed a public follow-on offering of 11,500,000 shares of our common stock at a public offering price of $16.00 per share.  The net proceeds of the follow-on offering were approximately $176.3 million, after deducting the underwriting discount and offering costs paid and accrued aggregating approximately $7.7 million.  On February 3, 2015, we contributed the net proceeds of the offering to our Operating Partnership in exchange for 11,500,000 common units of partnership interests in the Operating Partnership (“OP Units”).

Noncontrolling Interests

Noncontrolling interests in our Operating Partnership relate to interests in the partnership that are not owned by us. Noncontrolling interests consisted of 2,296,686 OP Units and represented approximately 4.0% of our Operating Partnership as of March 31, 2015. 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, 2015, 26,658 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $297,000 of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders equity.

26

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

2013 Incentive Award Plan

In July 2013, we established the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which we may make grants of stock options, restricted stock, long term incentive plan units in our Operating Partnership and other stock based and cash awards to our non-employee directors, employees and consultants. The maximum number of shares of our common stock that may be issued or transferred pursuant to the Plan is 2,272,689 shares (of which 1,818,389 shares of common stock remain available for issuance as of March 31, 2015).

Shares of our restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent or the administrator of the Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions generally expire upon vesting. Shares of our restricted common stock have full voting rights and rights to dividends.

During the three months ended March 31, 2015 and 2014, we recognized net equity compensation expense of $367,000 and $172,000, respectively, related to the restricted common stock grants ultimately expected to vest. Equity compensation expense is included in general and administrative and property expenses in the accompanying consolidated statements of operations. Certain amounts of equity compensation expense are capitalized for employees who provide leasing and construction services. During the three months ended March 31, 2015 and 2014, we capitalized $18,000 and $29,000 respectively, related to these employees.

The following table sets forth our nonvested restricted stock activity for the three months ended March 31, 2015:

	Number of Nonvested Shares of Restricted Common Stock
Balance at January 1, 2015		320,017
Granted		108,699
Forfeited		(8,436	)
Vested		-
Balance at March 31, 2015		420,280

The following table sets forth the vesting schedule of total nonvested shares of restricted stock outstanding as of March 31, 2015:

	Shares
April 1, 2015 - December 31, 2015		106,754
2016		112,232
2017		140,007
2018		42,266
2019		19,021
		420,280

As of March 31, 2015, there was approximately $4.5 million of total unrecognized compensation expense related to nonvested shares of our restricted common stock expected to vest, of which approximately $0.3 million will be capitalized for employees who provide leasing and construction services. As of March 31, 2015, this total unrecognized compensation expense is expected to be recognized over a weighted average remaining period of 40 months.

27

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Changes in Accumulated Other Comprehensive Loss

The following table summarizes the changes in our accumulated other comprehensive loss balance for the three months ended March 31, 2015, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Loss
Balance at January 1, 2015	$	(1,331,000	)
Other comprehensive loss before reclassifications		(1,982,000	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		105,000
Net current period other comprehensive loss		(1,877,000	)
Less other comprehensive loss attributable to noncontrolling interests		61,000
Other comprehensive loss attributable to common stockholders		(1,816,000	)
Balance at March 31, 2015	$	(3,147,000	)

15. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2015			2014
Numerator:
Net income (loss) from continuing operations	$	81,000		$	(717,000	)
Net (income) loss from continuing operations attributable to noncontrolling interests		(4,000	)		75,000
Income from continuing operations attributable to participating securities		(50,000	)		(16,000	)
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc.	$	27,000		$	(658,000	)
Income from discontinued operations		-			2,146,000
Income from discontinued operations attributable to noncontrolling interests		-			(227,000	)
Income from discontinued operations attributable to participating securities		-			-
Income from discontinued operations attributable to Rexford Industrial Realty, Inc.	$	-		$	1,919,000
Net income	$	81,000		$	1,429,000
Net income attributable to noncontrolling interests		(4,000	)		(152,000	)
Net income attributable to participating securities		(50,000	)		(16,000	)
Net income attributable to Rexford Industrial Realty, Inc.	$	27,000		$	1,261,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted		50,683,528			25,419,418
Earnings per share - Basic and Diluted:
Net income (loss) from continuing operations attributable to common stockholders	$	-		$	(0.03	)
Net income from discontinued operations attributable to common stockholders	$	-		$	0.08
Net income attributable to common stockholders	$	-		$	0.05

Participating securities include 420,280 and 131,786 shares of unvested restricted stock outstanding at March 31, 2015 and 2014, respectively, which participate in non-forfeitable dividends of the Company. Participating securities have been allocated earnings, in proportion to total weighted average shares outstanding, based upon the greater of net income or common dividends declared.

The effect of including unvested restricted common stock using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as its inclusion would have been antidilutive.  As such, the number of weighted average shares of common stock outstanding, both basic and diluted, are the same for the three months ended March 31, 2015 and 2014.

28

REXFORD INDUSTRIAL REALTY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

16. Subsequent Events

On April 1, 2015, we repaid the $10.1 million outstanding balance on our loan secured by the property located at 2980-2990 North San Fernando Road.  We repaid the balance using available cash on hand and did not incur any prepayment penalties for repaying in advance of the maturity date of July 1, 2015.  

In April 2015, the Company entered into separate Equity Distribution Agreements (the “Agreements”) with each of Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC (the “Sales Agents”). Under the terms of the Agreements, the Company may issue and sell from time to time through or to the Sales Agents, as sales agents and/or principals, shares of the Company’s common stock having an aggregate offering amount of up to $125.0 million.

On April 30, 2015, we acquired the property located at 9615 S. Norwalk Boulevard in Santa Fe Springs, California for a contract price of $9.6 million using available cash on hand.  The property consists of a 10 acre paved land storage facility and includes a 26,362 square foot industrial building and a 12,000 square foot office building.

On May 1, 2015, we acquired the property located at 16221 Arthur Street in Cerritos, California for a contract price of $5.8 million using available cash on hand.  The property consists of one single-tenant building totaling 61,372 rentable square feet.

Subsequent to March 31, 2015, 27,614 OP Units were converted into an equivalent number of shares of common stock.

29

Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements and the related notes thereto that appear in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q. The terms “Company,” “we,” “us,” and “our” refer to Rexford Industrial Realty, Inc. and its consolidated subsidiaries except where the context otherwise requires.

Forward-Looking Statements

We make statements in this quarterly report that are forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors including, without limitation:

· the competitive environment in which we operate;

· real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;

· decreased rental rates or increasing vacancy rates;

· potential defaults on or non-renewal of leases by tenants;

· potential bankruptcy or insolvency of tenants;

· acquisition risks, including failure of such acquisitions to perform in accordance with expectations;

· the timing of acquisitions and dispositions;

· potential natural disasters such as earthquakes, wildfires or floods;

· the consequence of any future security alerts and/or terrorist attacks;

· national, international, regional and local economic conditions;

· the general level of interest rates;

· potential changes in the law or governmental regulations that affect us and interpretations of those laws and regulations, including changes in real estate and zoning or real estate investment trust (“REIT”) tax laws, and potential increases in real property tax rates;

· financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all;

· lack of or insufficient amounts of insurance;

· our failure to complete acquisitions;  

· our failure to successfully integrate acquired properties;

· our ability to qualify and maintain our qualification as a REIT;

· litigation, including costs associated with prosecuting or defending pending or threatened claims and any adverse outcomes; and

· possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.

Accordingly, there is no assurance that our expectations will be realized. Except as otherwise required by the federal securities laws, we disclaim any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should review carefully our financial statements and the notes

30

thereto, as well as the section entitled “Risk Factors” in our Annual Report on Form 10-K, as amended, for the year ended December 31, 2014.

Company Overview

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service REIT focused on owning and operating industrial properties in Southern California infill markets. Our goal is to generate attractive risk-adjusted returns for our stockholders by providing superior access to industrial property investments 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 primarily located in Southern California infill markets.  As of March 31, 2015, our consolidated portfolio consisted of 102 properties with approximately 10.3 million rentable square feet.  We also hold a 15% interest in a joint venture (the “JV”) that indirectly owns one property located in Ventura County with approximately 0.5 million square feet, which we manage. In addition we currently manage an additional 19 properties with approximately 1.2 million rentable square feet.  

We are organized and conduct our operations to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and generally are not subject to federal taxes on our income to the extent we distribute our income to our shareholders and maintain our qualification as a REIT.

Factors That May Influence Future Results of Operations

Acquisition and Development of Properties

Since our IPO, we have acquired 51 properties, aggregating approximately 5.2 million square feet, for approximately $548 million, and have expanded our consolidated portfolio by nearly 93% in less than two years.  Of these 51 properties, we have acquired 20 properties aggregating approximately 1.9 million square feet, that we consider “value-add acquisitions”.  We consider a property to be a value-add acquisition when it provides opportunities for repositioning or redevelopment that we believe will increase the occupancy and the cash flow from the property.  We intend to continue to grow our portfolio through disciplined acquisitions in prime Southern California infill markets, and will continue to pursue value-add acquisitions that will play a strategic role in our future growth.  

Costs associated with acquisitions accounted for as business combinations are expensed as incurred.  Acquisitions are subject to various risks and uncertainties, and we may be unable to complete an acquisition after making a nonrefundable deposit or incurring acquisition related costs. During the three months ended March 31, 2015, we expensed approximately $233,000 of acquisition costs, and we expect to incur additional acquisition costs during the remainder of 2015 as we continue to acquire properties and grow our portfolio.  Costs associated with acquisitions accounted for as asset acquisitions are capitalized as part of the purchase price allocation. During the three months ended March 31, 2015, we capitalized approximately $36,000 of acquisition costs associated with acquisitions accounted for as asset acquisitions.  

Properties that are undergoing repositioning or redevelopment may qualify for interest and real estate tax capitalization.  During the three months ended March 31, 2015, we capitalized approximately $172,000 of these costs for qualifying projects.  As of March 31, 2015, five of our properties are in various stages of redevelopment and repositioning. An increase in our repositioning and development activities resulting from value-add acquisitions could cause an increase in the asset balances qualifying for interest and tax capitalization in future periods.  

Rental Revenue and Tenant Reimbursements

We receive income primarily from rental revenue from our properties. The amount of rental revenue generated by the properties in our portfolio depends principally on the occupancy levels and lease rates at our properties, our ability to lease currently available space and space that becomes available as a result of lease expirations and on the rental rates at our properties.

Occupancy Rates. As of March 31, 2015, our consolidated portfolio was approximately 89.5% occupied and 90.8% leased. The difference between our occupancy rate and leased rate is attributed to our uncommenced leases. Our occupancy rate is impacted by market conditions in the areas in which we operate. San Diego County and Los Angeles County, where our properties were 89.0% and 87.1% occupied as of March 31, 2015, respectively. By way of comparison, our San Bernardino County, Orange County, and Ventura County properties were 96.3%, 92.6% and 91.8% occupied, respectively, as of March 31, 2015. In addition, a key component of our growth strategy is to acquire distressed, off-market and lightly marketed properties that are often operating at below-market occupancy at the time of acquisition. Through various redevelopment, repositioning and professional leasing and marketing strategies, we seek to

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increase the properties’ functionality and attractiveness to prospective tenants and, over time, stabilize the properties at occupancy rates that meet or exceed market rates. Consistent with this strategy, five of our properties, representing 606,125 square feet, are currently in various stages of redevelopment and repositioning. Excluding properties in redevelopment or repositioning, our remaining properties were approximately 94.3% occupied as of March 31, 2015.  During the three months ended March 31, 2015, we entered into 6 leases that had not commenced as of March 31, 2015, representing 130,380 square feet, or an additional 1.3% of our total rentable square feet. We believe the opportunity to increase occupancy at our properties will be a significant driver of future revenue growth.

Leasing Activity and Rental Rates. The following table sets forth our leasing activity for the three months ended March 31, 2015:

					Gross Leasing Activity
	Expiring Leases				Renewals										Renewal Retention %						New Leases
Quarter	Number of Leases		Rentable Square Feet		Number of Leases		Rentable Square Feet		Cash Rent Change			GAAP Rent Change			Number of Leases			Rentable Square Feet			Number of Leases		Rentable Square Feet		Cash Rent Change			GAAP Rent Change
Q1-2015		120		625,534		69		319,849		3.9	%		10.2	%		57.5	%		51.1	%		72		458,301		5.7	%		15.1	%

During the three months ended March 31, 2015, we executed 72 new leases covering 458,301 square feet and renewed 69 leases covering 319,849 square feet, while 51 leases covering 305,685 square feet vacated.  Of the 305,685 square feet that vacated, 17,080 square feet was the result of eight tenant defaults, 4,813 square feet was the result of four tenant relocations, and the remaining 283,792 square feet was the result of 39 tenants with natural lease expirations who did not renew. Our leasing activity is impacted both by our own redeveloping and repositioning efforts as well as by market conditions. When we redevelop or reposition a property, its space may become unavailable for leasing until completion of the redevelopment or repositioning efforts. In addition, while we have recently noted gradual improvements in market conditions in our markets, the market recovery has been uneven and some markets, particularly San Diego County, have been slower to recover.

For the 69 leases that we renewed during the three months ended March 31, 2015, the renewal spreads increased by 3.9% on a cash basis and 10.2% on a GAAP basis.  For the 72 new leases that were executed during the three months ended March 31, 2015, the leasing spreads increased by 5.7% on a cash basis and 15.1% on a GAAP basis, when comparing the ending cash rental rates on the expiring leases for the same space. Although our leasing spreads have varied from quarter to quarter, we believe that our recent leasing statistics are indicative of a trend of improving leasing fundamentals across our submarkets. Among the factors that affect lease rates on renewal is our acquisition activity. We acquired four properties during the three months ended March 31, 2015 and 36 properties during the year ended December 31, 2014. At the time of acquisition of some of these properties, our underwriting and what we believe to be our value-oriented purchase prices may have factored in anticipated or potential roll-downs in rent at some upcoming lease expirations. We believe that rental rates in our markets for product such as our properties have yet to fully recover from the 2008 financial crisis and subsequent economic recession, and accordingly we expect potential increases in lease rates upon renewal of upcoming lease expirations as market conditions continue to improve.

Future economic downturns or regional downturns affecting our submarkets that impair our ability to renew or re-lease space and adverse developments that affect the ability of our tenants to fulfill their lease obligations, such as tenant bankruptcies, could adversely affect our ability to maintain or increase occupancy or rental rates at our properties. Adverse developments or trends in one or more of these factors could adversely affect our rental revenue in future periods.  Additionally, due to the size of our tenant spaces compared with our peer group and our typically shorter-term leases, we may have increased exposure to a negative trend in rental rates among our target tenant base than other industrial REITs.

Scheduled Lease Expirations

Our ability to re-lease space subject to expiring leases will impact our results of operations and is affected by economic and competitive conditions in our markets and by the desirability of our individual properties. As of March 31, 2015, in addition to approximately 1,073,000 rentable square feet of currently available space in our properties, leases representing approximately 13.5% and 25.8% of the aggregate rentable square footage of our portfolio are scheduled to expire during the years ending December 31, 2015 and December 31, 2016, respectively. As described in more detail above under “Rental Revenue and Tenant Reimbursements,” during the three months ended March 31, 2015, we renewed approximately 57.5% of leases scheduled to expire which represented approximately 51.1% of the aggregate rentable square footage under all expiring leases.

The leases scheduled to expire during the years ending December 31, 2015, and December 31, 2016, represent approximately 15.2% and 27.2% respectively, of the total annualized rent for our portfolio at March 31, 2015. We estimate that, on a weighted

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average basis, in-place rents of leases scheduled to expire in 2015 and 2016 are currently at or slightly below current market asking rents, although individual properties within any particular submarket presently may be leased either above, below, or at the current market asking rates within that submarket, and the average rental rates for individual submarkets may be above, below, or at the average cash rental rate of our portfolio. Over the last few quarters, we have noted that rental rates in our markets for product such as our properties have begun to recover, and accordingly we expect potential increases in lease rates upon renewal of upcoming 2015 and 2016 lease expirations as market conditions continue to improve.

Taxable REIT Subsidiary

As of March 31, 2015, our Operating Partnership indirectly and wholly owns Rexford Industrial Realty and Management, Inc., which we refer to as the services company.  We have elected, together with our services company, to treat our services company as a taxable REIT subsidiary for federal income tax purposes. A taxable REIT subsidiary generally may provide non-customary and other services to our tenants and engage in activities that we may not engage in directly without adversely affecting our qualification as a REIT, provided a taxable REIT subsidiary may not operate or manage a lodging facility or health care facility or provide rights to any brand name under which any lodging facility or health care facility is operated. We may form additional taxable REIT subsidiaries in the future, and our Operating Partnership may contribute some or all of its interests in certain wholly owned subsidiaries or their assets to our services company. Any income earned by our taxable REIT subsidiaries will not be included in our taxable income for purposes of the 75% or 95% gross income tests, except to the extent such income is distributed to us as a dividend, in which case such dividend income will qualify under the 95%, but not the 75%, gross income test. Because a taxable REIT subsidiary is subject to federal income tax, and state and local income tax (where applicable) as a regular corporation, the income earned by our taxable REIT subsidiaries generally will be subject to an additional level of tax as compared to the income earned by our other subsidiaries.

Conditions in Our Markets

The properties in our portfolio are located primarily in Southern California infill markets. Positive or negative changes in economic or other conditions, adverse weather conditions and natural disasters in this market may affect our overall performance.

Property Expenses

Our property expenses generally consist of utilities, real estate taxes, insurance, site repair and maintenance costs, and the allocation of overhead costs. For the majority of our properties, our rental expenses are controlled, in part, by either the triple net provisions or modified gross expense reimbursements in tenant leases. However, the terms of our leases vary and in some instances we may absorb rental expenses. Our overall financial results will be impacted by the extent to which we are able to pass-through rental expenses to our tenants.

General and Administrative Expenses

We expect to incur increased general and administrative expenses, including legal, accounting and other expenses related to corporate governance, public reporting and compliance with various provisions of the Sarbanes-Oxley Act, as compared to our predecessor. We anticipate that our staffing levels will increase from 57 employees presently to between 65 and 75 employees during the next 12 to 24 months and, as a result, our general and administrative expenses will increase further.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in certain circumstances that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses for the reporting periods. Actual amounts may differ from these estimates and assumptions. We have summarized below those accounting policies that require material subjective or complex judgments and that have the most significant impact on financial condition and results of operations. Management evaluates these estimates on an ongoing basis, based upon information currently available and on various assumptions that it believes are reasonable as of the date hereof. In addition, other companies in similar businesses may use different estimation policies and methodologies, which may impact the comparability of our results of operations and financial condition to those of other companies.

A critical accounting policy is one that is both important to the portrayal of an entity’s financial condition and results of operations and requires judgment on the part of management. Generally, the judgment requires management to make estimates and assumptions about the effect of matters that are inherently uncertain. Estimates are prepared using management’s best judgment, after considering past and current economic conditions and expectations for the future. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Changes in estimates could affect our financial position and specific items in our results of operations that are used by the users of our financial statements in their evaluation of our performance.

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Of the accounting policies discussed in Note 2 to the consolidated financial statements, the accounting policies presented below have been identified by us as critical accounting policies.

Investment in Real Estate

Acquisitions

When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities.  The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year.

We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information.

In determining the fair value of intangible lease assets or liabilities, we 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 costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred.

The difference between the fair value and the face value of debt assumed 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 is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date.

For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs.

Capitalization of Costs

We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize interest, insurance, real estate taxes and certain general and administrative costs, including direct payroll, bonus and noncash equity compensation, of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets.

Impairment of Long-Lived Assets

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. In order to review our real estate assets for recoverability, we consider current market conditions, as well as our intent with respect to holding or disposing of the asset. Our intent with regard to the underlying assets might change as market conditions change, as well as other factors, especially in the current global economic environment. 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 and 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 our estimates of future expectations and the strategic plan we use 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 recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property.

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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 regard to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties

Revenue Recognition

We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence that an arrangement exists, services rendered, the fee is fixed and determinable and collectability is reasonably assured.  Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

Estimated reimbursements from tenants for real estate taxes, 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.  Lease termination fees, which are included in rental revenues in the accompanying consolidated statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant.

Revenues from management, leasing and development services are recognized when the related services have been provided and earned.

The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances.

Valuation of Receivables

We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. 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. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods.

Results of Operations

Comparison of the Three Months Ended March 31, 2015 to the Three Months Ended March 31, 2014

Our results of operations for all periods presented were affected by acquisitions and dispositions made during the three months ended March 31, 2015, and the year ended December 31, 2014.  Therefore, our results are not comparable from period to period. Our “Total Portfolio” represents all of the properties owned during the reported periods. To eliminate the effect of changes in our Total Portfolio due to acquisitions and dispositions, we have separately presented the results of our “Same Properties Portfolio.”

Properties included in our Same Properties Portfolio are the properties in our industrial portfolio that were wholly-owned by us as of January 1, 2014 and still owned by us as of March 31, 2015.  Results for our Same Properties Portfolio exclude our joint venture property, any properties that were acquired or sold during the three months ended March 31, 2015 and the year ended December 31, 2014, and corporate general and administrative expenses.  For the comparison of the three months ended March 31, 2015 to the three months ended March 31, 2014, our Same Properties Portfolio consists of 62 properties aggregating approximately 6.1 million square feet.

The results of our Same Properties Portfolio are presented to highlight for investors and users of our consolidated financial statements the operating results of our on-going business.

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	Same Properties Portfolio										Total Portfolio
	Three Months Ended March 31,				Increase/			%			Three Months Ended March 31,					Increase/			%
	2015		2014		(Decrease)			Change			2015		2014			(Decrease)			Change
RENTAL REVENUES
Rental revenues	$	11,753,000	$	11,150,000	$	603,000			5.4	%	$	18,557,000	$	11,628,000		$	6,929,000			59.6	%
Tenant reimbursements		1,338,000		1,405,000		(67,000	)		(4.8	%)		2,184,000		1,511,000			673,000			44.5	%
Management, leasing and development services		-		-		-			-	%		132,000		234,000			(102,000	)		(43.6	%)
Other income		37,000		44,000		(7,000	)		(15.9	%)		190,000		42,000			148,000			352.4	%
TOTAL RENTAL REVENUES		13,128,000		12,599,000		529,000			4.2	%		21,063,000		13,415,000			7,648,000			57.0	%
Interest income		277,000		275,000		2,000			0.7	%		277,000		276,000			1,000			0.4	%
TOTAL REVENUES		13,405,000		12,874,000		531,000			4.1	%		21,340,000		13,691,000			7,649,000			55.9	%
EXPENSES
Property expenses		3,598,000		3,725,000		(127,000	)		(3.4	%)		5,771,000		4,134,000			1,637,000			39.6	%
General and administrative		-		-		-			-	%		3,546,000		2,605,000			941,000			36.1	%
Depreciation and amortization		4,550,000		5,661,000		(1,111,000	)		(19.6	%)		9,884,000		6,130,000			3,754,000			61.2	%
TOTAL OPERATING EXPENSES		8,148,000		9,386,000		(1,238,000	)		(13.2	%)		19,201,000		12,869,000			6,332,000			49.2	%
OTHER (INCOME) EXPENSE
Acquisition expenses		-		-		-			-	%		233,000		333,000			(100,000	)		(30.0	%)
Interest expense		236,000		289,000		(53,000	)		(18.3	%)		1,826,000		1,251,000			575,000			46.0	%
TOTAL OTHER EXPENSE		236,000		289,000		(53,000	)		(18.3	%)		2,059,000		1,584,000			475,000			30.0	%
TOTAL EXPENSES		8,384,000		9,675,000		(1,291,000	)		(13.3	%)		21,260,000		14,453,000			6,807,000			47.1	%
Equity in income of unconsolidated real estate entities		-		-		-						1,000		45,000			(44,000	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		5,021,000		3,199,000		1,822,000						81,000		(717,000	)		798,000
DISCONTINUED OPERATIONS
Income from discontinued operations before gain on sale of real estate		-		-		-						-		21,000			(21,000	)
Gain on sale of real estate		-		-		-						-		2,125,000			(2,125,000	)
INCOME FROM DISCONTINUED OPERATIONS		-		-		-						-		2,146,000			(2,146,000	)
NET INCOME (LOSS)	$	5,021,000	$	3,199,000	$	1,822,000					$	81,000	$	1,429,000		$	(1,348,000	)

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Rental Revenue

Our Same Properties Portfolio and Total Portfolio rental revenue increased approximately $0.6 million, or 5.4%, and approximately $6.9 million, or 59.6%, respectively, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014. The increase in our Same Properties Portfolio is primarily due to the increase in our average occupancy for comparable periods and the increase in average rental rates on new and renewal leases. Our Total Portfolio rental revenue was also positively impacted by the revenues from the 40 properties we acquired between January 1, 2014 and March 31, 2015.

Tenant Reimbursements

Our Same Properties Portfolio and Total Portfolio tenant reimbursements revenue decreased approximately $0.1 million, or 4.8%, and increased approximately $0.7 million, or 44.5%, respectively, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014. The decrease in our Same Properties Portfolio is primarily due to timing differences in completing prior year recoverable expense reconciliations for comparable periods. Our Total Portfolio tenant reimbursements increased due to the 40 properties we acquired between January 1, 2014 and March 31, 2015.

Management, Leasing and Development Services

Our Total Portfolio management, leasing and development services revenue decreased approximately $0.1 million, or 43.6%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014.  This was primarily due to lower management fees from our JV as a result of the sale of two of the three buildings owned by the JV in November 2014.  

Other Income

Our Total Portfolio other income increased approximately $0.1 million, or 352.4%,  for the three months ended March 31, 2015 compared to the three months ended March 31, 2014, primarily due to filming income at one of our properties.  

Property Expenses

Our Same Properties Portfolio property expenses decreased approximately $0.1 million, or 3.4%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, primarily due a decrease in repairs and maintenance expense.  Our Total Portfolio property expenses increased approximately $1.6 million, or 39.6%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014, primarily as a result of incremental expenses from the 40 properties we acquired between January 1, 2014 and March 31, 2015.

General and Administrative

Our Total Portfolio general and administrative expenses increased approximately $0.9 million, or 36.1%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014.  The increase is primarily due to an approximately $0.4 million increase in legal expenses, an approximately $0.2 million increase in non-cash equity compensation expense due to restricted stock grants made subsequent to March 31, 2014, an approximately $0.1 million increase in payroll and benefits expense due to increased staffing levels and an approximately $0.1 million increase in professional audit and tax fees.

Depreciation and Amortization

Our Same Properties Portfolio depreciation and amortization expense decreased approximately $1.1 million, or 19.6%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014 due to acquired lease related intangible and tangible assets for several of our properties becoming fully depreciated during the three months ended March 31, 2015 and the year ended December 31, 2014. Our Total Portfolio depreciation and amortization expense increased approximately $3.8 million, or 61.2%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014 due to incremental expenses from the 40 properties we acquired between January 1, 2014 and March 31, 2015.

Acquisition Expenses

Our Total Portfolio acquisition expenses decreased approximately $0.1 million, or 30.0%, during the three months ended March 31, 2015 compared to the three months ended March 31, 2014 due to lower expenses incurred for transactions completed during the current period.

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Interest Expense

Our Same Properties Portfolio interest expense decreased by approximately $0.1 million, or 18.3%, for the three months ended March 31, 2015 compared to the three months ended March 31, 2014, due to the repayment of the note secured by our property located at 10700 Jersey Boulevard in October 2014.  Our Total Portfolio interest expense increased by approximately $0.6 million, or 46.0%, for the three months ended March 31, 2015 compared to the three months ended March 31, 2014.  This was primarily due to incremental interest expense from the $48.5 million term loan we obtained and the two mortgage loans we assumed subsequent to March 31, 2014, and incremental interest expense from our effective interest rate swap.  The increase was partially offset by the decrease in interest expense resulting from paying off the outstanding balance on our revolving credit facility with proceeds from follow-on offering during the three months ended March 31, 2015.

Equity in Income of Unconsolidated Real Estate Entities

Equity in income of unconsolidated real estate entities includes our equity interests in the operating results of the properties held by our JV.  In November 2014, the JV sold two of the three buildings owned by the JV.  Our Total Portfolio equity in income of unconsolidated real estate entities decreased by $44,000 for the three months ended March 31, 2015 compared to the three months ended March 31, 2014, as a result of this sale.

Discontinued Operations

Our income from discontinued operations of $2.1 million for the three months ended March 31, 2014 is comprised primarily of the gain on sale of our property located at 1335 Park Center Drive, partially offset by the loss on sale of our property located at 2900 N. Madera Road.

Non-GAAP Supplemental Measure: Funds From Operations

We calculate funds from operations (“FFO”) before non-controlling interest in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”).  FFO represents net income (loss) (computed in accordance with accounting principles generally accepted in the United States (“GAAP”), excluding gains (or losses) from sales of depreciable operating property, real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated joint ventures.

Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization, gains and losses from property dispositions, and asset impairments, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of performance used by other REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate or interpret FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs’ FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

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The following table sets forth a reconciliation of FFO before non-controlling interest for the periods presented to net income, the nearest GAAP equivalent:

	Three Months Ended March 31,
	2015		2014
Funds From Operations (FFO)
Net income	$	81,000	$	1,429,000
Add:
Depreciation and amortization, including amounts in discontinued operations		9,884,000		6,137,000
Depreciation and amortization from unconsolidated joint venture(1)		28,000		85,000
Deduct:
Gain on sale of real estate, including amounts in discontinued operations		-		(2,125,000	)
Funds from operations	$	9,993,000	$	5,526,000

(1) Amount represents our 15% ownership of the Mission Oaks unconsolidated joint venture.  

Non-GAAP Supplemental Measure: NOI and Cash NOI

Net operating income (“NOI”) includes the revenue and expense directly attributable to our real estate properties calculated in accordance with GAAP.  NOI is calculated as total revenue from real estate operations including i) rental revenues ii) tenant reimbursements, and iii) other income less property expenses (before interest expense, depreciation and amortization).  We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense and gains (or losses) from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.  We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs.  However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited.  Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs’ NOI.  Accordingly, NOI should be considered only as a supplement to net income as a measure of our performance.  NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs.  NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP.  

NOI on a cash-basis (“Cash NOI”) is a non-GAAP measure, which we calculate by adding or subtracting from NOI i) fair value lease revenue and ii) straight-line rent adjustment.  We use Cash NOI, together with NOI, as a supplemental performance measure.  Cash NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs.  Cash NOI should not be used as a substitute for cash flow from operating activities computed in accordance with GAAP.

The following table sets forth the revenue and expense items comprising NOI and the adjustments to calculate Cash NOI:

	Three Months Ended March 31,
	2015			2014
Rental revenues	$	18,557,000		$	11,628,000
Tenant reimbursements		2,184,000			1,511,000
Other income		190,000			42,000
Total operating revenues		20,931,000			13,181,000
Property expenses		5,771,000			4,134,000
Net Operating Income	$	15,160,000		$	9,047,000
Fair value lease revenue		39,000			81,000
Straight line rent adjustment		(365,000	)		(184,000	)
Cash Net Operating Income	$	14,834,000		$	8,944,000

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The following table sets forth a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to NOI and Cash NOI:

	Three Months Ended March 31,
	2015			2014
Net income	$	81,000		$	1,429,000
Add:
General and administrative		3,546,000			2,605,000
Depreciation and amortization		9,884,000			6,130,000
Acquisitions expense		233,000			333,000
Interest expense		1,826,000			1,251,000
Deduct:
Management, leasing and development services		132,000			234,000
Interest income		277,000			276,000
Equity in income from unconsolidated real estate entities		1,000			45,000
Income from discontinued operations before gain on sale of real estate		-			21,000
Gain on sale of real estate		-			2,125,000
Net Operating Income	$	15,160,000		$	9,047,000
Fair value lease revenue		39,000			81,000
Straight line rent adjustment		(365,000	)		(184,000	)
Cash Net Operating Income	$	14,834,000		$	8,944,000

Non-GAAP Supplemental Measure: EBITDA

We believe that earnings before interest expense, income taxes, depreciation and amortization (“EBITDA”) is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. However, our industry peers may not calculate EBITDA in the same manner as we do and, accordingly, our EBITDA may not be comparable to our peers’ EBITDA.  Accordingly, EBITDA should be considered only as a supplement to net income as a measure of our performance.  

The following table sets forth a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to EBITDA:

	Three Months Ended March 31,
	2015		2014
Net income	$	81,000	$	1,429,000
Interest expense		1,826,000		1,251,000
Proportionate share of interest expense from unconsolidated joint venture		-		57,000
Depreciation and amortization, including amounts in discontinued operations		9,884,000		6,137,000
Proportionate share of real estate related depreciation and amortization from unconsolidated joint venture		28,000		85,000
EBITDA	$	11,819,000	$	8,959,000

Liquidity and Capital Resources

Our short-term liquidity requirements consist primarily of funds to pay for operating expenses, interest expense and scheduled principal payments on outstanding indebtedness, general and administrative expenses, capital expenditures for tenant improvements and leasing commissions and distributions to our common stockholders and holders of common units.  We expect to meet our short-term liquidity requirements through available cash on hand, cash flow from operations, by drawing on our unsecured revolving credit facility and pursuant to the ATM Program described below. As of March 31, 2015, our cash and cash equivalents were approximately $47.5 million, and we did not have any outstanding borrowings under our unsecured revolving credit facility, leaving $200.0 million available for additional borrowings.  

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Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, recurring and non-recurring capital expenditures and scheduled debt maturities.  During 2015, we expect to close on acquisitions aggregating $250 million or more.  As of May 8, 2015, we have already closed on approximately $68 million, and we currently have $29 million of acquisitions in escrow and outstanding letters of intent for properties aggregating approximately $40 million, which we anticipate closing in the coming quarters.  We intend to satisfy our long-term liquidity needs through cash flow from operations, long-term secured and unsecured borrowings, borrowings available under our revolving credit facility and the issuance of equity securities.

In April 2015, we established an at-the-market equity offering program (the “ATM Program”) pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $125,000,000 in amounts and at times to be determined by us from time to time.  Actual sales, if any, will depend on a variety of factors to be determined by us from time to time, including among other, 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.  We intend to use the net proceeds from the offering of shares under the ATM Program, if any, to fund potential acquisition opportunities, repay amounts outstanding from time to time under our revolving credit facility or other debt financing obligations, to fund our development or redevelopment activities and/or for general corporate purposes. As of May 8, 2015, no shares of common stock have been sold pursuant to the ATM Program.

On February 3, 2015, we completed a public follow-on offering of 11,500,000 shares of common stock at a price per share of $16.00.  The net proceeds of the follow-on offering were approximately $176.3 million, after deducting the underwriting discount and offering costs paid and accrued aggregating approximately $7.7 million.  A portion of the net proceeds from this offering were used to repay all of the outstanding borrowings under our unsecured revolving credit facility, which had an outstanding balance of $116.0 million on February 6, 2015, the date of repayment, as well as to fund the four acquisitions we completed during the quarter ended March 31, 2015.  The remaining proceeds will be used to fund future anticipated acquisitions and for general corporate purposes.

The offering noted above was made pursuant to a shelf registration statement declared effective by the SEC on August 12, 2014, whereby we may offer and sell an indeterminate number of equity securities up to a total dollar amount of $750,000,000. From time to time, we may decide to issue additional securities under this shelf registration statement to fund acquisitions, the repayment of long-term debt upon maturity and for other general corporate purposes.

At March 31, 2015, we had total indebtedness of approximately $269.9 million, reflecting a net debt to total market capitalization of approximately 19.7%. Our total market capitalization is defined as the sum of the market value of our outstanding common stock excluding shares of unvested restricted stock, plus the aggregate value of common units not owned by us, plus the value of our net debt.  Our net debt is defined as our consolidated indebtedness less cash and cash equivalents.  

Unsecured Revolving Credit and Term Loan Facilities

We have a senior unsecured revolving credit facility with borrowing capacity of $200.0 million (the “Revolver”) and a senior unsecured term loan facility (the “Term Loan Facility”) with borrowing capacity of $100.0 million (together the “Credit Facility”).  The Revolver is scheduled to mature on June 11, 2018 with one 12-month extension option available, subject to certain conditions, and the Term Loan Facility is scheduled to mature on June 11, 2019.  The aggregate principal amount of the Credit Facility may be increased to a total of up to $600.0 million, which may be comprised of additional revolving commitments under the Revolver or an increase to the Term Loan Facility, or any combination of the foregoing, subject to the satisfaction of specified conditions and the identification of lenders willing to make available such additional amounts.

Interest on the Credit Facility is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greater of (a) the federal funds rate plus 0.50%, (b) the administrative agent’s prime rate or (c) the thirty-day LIBOR plus 1.00%, plus the applicable base rate margin. Until we attain an investment grade rating by two or more of Standard & Poor’s, Moody’s Investor Services and Fitch Ratings, the applicable LIBOR margin will range from 1.30% to 1.90%  for the Revolver and 1.25% to 1.85% for the Term Loan Facility, depending on the our Leverage Ratio (as defined in the credit agreement). During February 2015, our Revolver and Term Loan Facility were assigned an investment grade rating of BBB- by Fitch Ratings.  Additionally, there is a quarterly facility fee that is paid on the undrawn portion of the Revolver in an amount equal to 0.20% or 0.30% depending on the undrawn amount of the Revolver.

The Credit Facility is guaranteed by the Company and by substantially all of the current and future subsidiaries of the Operating Partnership that own an unencumbered property. The Credit Facility is not secured by the Company’s properties or by equity interests in the subsidiaries that hold such properties.

The Credit Facility includes a series of financial and other covenants that we must comply with in order to borrow under the Credit Facility, including:

· Maintaining a ratio of total indebtedness to total asset value of not more than 60%;

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· Maintaining a ratio of secured debt to total asset value of not more than 45%;

· Maintaining a ratio of total recourse debt to total asset value of not more than 15%;

· Maintaining a minimum tangible net worth of at least the sum of (i) $283,622,250, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after March 31, 2014;

· Maintaining a ratio of adjusted EBITDA (as defined in the credit agreement) to fixed charges of at least 1.50 to 1.0;

· Maintaining a ratio of total unsecured debt to total unencumbered asset value of not more than 60%;

· Maintaining a ratio of unencumbered NOI (as defined in the credit agreement) to unsecured interest expense of at least 1.75 to 1.0. 

The Revolver and the Term Loan Facility may be voluntarily prepaid in whole or in part at any time without premium or penalty.  Amounts borrowed under the Term Loan Facility and repaid or prepaid may not be re-borrowed.

Additionally, the Credit Facility provides 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.

The Credit Facility 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 Facility 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 Facility, 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.  We believe we are currently in compliance with all of the financial covenants required by our loan agreements.

Consolidated Indebtedness

The following table sets forth certain information with respect to our consolidated indebtedness outstanding as of March 31, 2015 (dollars in thousands):

	Principal Amount(1)		Interest Rate			Effective Interest Rate				Contractual Maturity Date
Fixed Rate Debt
The Park	$	3,141		5.125%			5.125	%		3/1/2031
2980 San Fernando		10,105		5.088%			5.088	%		7/1/2015
$60M Term Loan		30,000		3.726%	(2)		3.726	%		8/1/2019	(3)
12907 Imperial Hwy		5,383		5.950%			5.950	%		4/1/2018
Subtotal		48,629
Variable Rate Debt
Glendale Commerce Center		42,750	LIBOR + 2.00%				2.176	%	(4)	5/1/2016	(5)
$60M Term Loan		30,000	LIBOR + 1.90%		(2)		2.076	%	(4)	8/1/2019	(3)
$48.5M Term Loan		48,500	LIBOR + 1.55%				1.738	%	(4)	6/24/2017	(6)
$100M Term Loan Facility		100,000	LIBOR + 1.35%		(7)		1.526	%	(4)	6/11/2019
Revolving Credit Facility		-	LIBOR + 1.40%		(7)		1.576	%	(4)(8)	6/11/2018
Subtotal		221,250
Total/Weighted Average	$	269,879					2.236	%

(1) Excludes deferred loan fees and net debt premiums aggregating approximately $0.3 million at March 31, 2015.

(2) As of March 31, 2015, $30 million of the $60 million variable-rate term loan has been effectively fixed at 3.726% through the use of an interest rate swap with an effective date of January 15, 2015, and as such, is included in this table as fixed rate debt.  The remaining $30 million is included in this table as variable rate debt.

(3) With one 1-year option to extend, provided that certain conditions are satisfied.

(4) Based on the 30-day LIBOR rate as of March 31, 2015, as defined under the respective loan agreements.

(5) With two 1-year option to extend, provided that certain conditions are satisfied

(6) With one 2-year option to extend, provided that certain conditions are satisfied.

(7) The LIBOR margin will range from 1.30% to 1.90% for the revolving credit facility and 1.25% to 1.85% for the Term Loan Facility, depending on our Leverage Ratio, as defined in the loan agreement.

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(8) Excludes the effect of the unused commitment fee which is calculated as 0.30% or 0.20% of the daily unused commitment if the balance is under $100 million or over $100 million, respectively.

At March 31, 2015, we had total consolidated indebtedness of approximately $269.9 million, excluding deferred loan fees and net debt premiums aggregating approximately $0.3 million, with a weighted average interest rate of approximately 2.24% (based on the LIBOR rates in effect on March 31, 2015, and a margin of 140 basis points and 135 basis points on our Revolver and Term Loan Facility, respectively) and average term-to-maturity of 3.4 years.  At March 31, 2015, approximately $48.6 million, or 18.0% of our outstanding indebtedness is fixed rate debt with a weighted average interest rate of 4.35% and an average term-to-maturity of 4.1 years.  At March 31, 2015, approximately $221.3 million, or 82.0%, of our outstanding indebtedness is variable rate debt, with a weighted average interest rate of LIBOR + 1.59% and an average term-to-maturity of 3.2 years.  

During 2014, we executed four forward interest rate swaps agreements, for a total aggregate notional amount of $160.0 million, with effective dates beginning in 2015 and 2016.  Two of these interest rate swaps  will effectively fix the annual rate on our $60 million term loan as follows (i) $30 million at 3.726% from 1/15/15 to 2/15/19 and (ii) $30 million at 3.91% from 7/15/15 to 2/15/19.  The other two swaps will effectively fix the annual interest rate on our $100 million Term Loan Facility as follows: (i) $50 million at 1.79% plus the applicable term loan facility margin from 8/14/15 to 12/14/18, and (ii) $50 million at 2.005% plus the applicable term loan facility margin from 2/16/16 to 12/14/18.  As of March 31, 2015, only the interest rate swap with $30 million of notional and a term from 1/15/15 to 2/15/19, was effective.  If the other three interest rate swaps were effective as of March 31, 2015, our consolidated debt would be 66% fixed and 34% variable.    

Debt Covenants

In addition to our Credit Facility, certain of our other loan agreements contain financial covenants.  The Glendale Commerce Center loan contains the financial covenants noted below.  Additionally, there is a debt service coverage ratio requirement and a loan-to-value ratio requirement that are tested each time we exercise an option to extend the maturity date of the loan.

· Maintaining a Debt Service Coverage Ratio (as defined in the tern loan agreement) of at least 1.10 to 1.00, to be tested quarterly;

· Maintaining Unencumbered Liquid Assets (as defined in the term loan agreement) of not less than (i) $5,000,000, to be tested annually as of December 31 of each year;

· Maintaining a minimum Fair Market Net Worth (as defined in the term loan agreement) of at least $75,000,000, to be tested annually as of December 31 of each year.

Our $60.0 million term loan contains the following financial covenants:

· Maintaining a Debt Service Coverage Ratio (as defined in the tern loan agreement) of at least 1.10 to 1.00, to be tested quarterly;

· Maintaining Unencumbered Liquid Assets (as defined in the term loan agreement) of not less than (i) $5,000,000, or (ii) $8,000,000 if we elect to have Line of Credit Availability (as defined in the term loan agreement) included in the calculation, of which $2,000,000 must be cash or cash equivalents, to be tested annually as of December 31 of each year;

· Maintaining a minimum Fair Market Net Worth (as defined in the term loan agreement) of at least $75,000,000, to be tested annually as of December 31 of each year.

Our $48.5 million term loan contains a performance covenant that is tested annually and requires the achievement of a minimum in-place debt yield of 9.25% by the eight properties securing the loan.  

We expect to be in compliance with all of the quarterly financial covenants required by our loan agreements.

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Contractual Obligations

The following table sets forth our principal obligations and commitments, including periodic interest payments related to our indebtedness outstanding as of March 31, 2015 (in thousands):

	Payments by Period
	Total		2015		2016		2017		2018		2019		Thereafter
Principal payments	$	269,879	$	10,286	$	43,002	$	48,766	$	5,208	$	160,158	$	2,459
Interest payments - fixed-rate debt		2,639		532		465		451		238		130		823
Interest payments - variable-rate debt(1)		14,759		3,409		3,923		3,245		2,772		1,410		-
Interest rate swap payments(2)		9,218		948		2,662		2,766		2,709		133		-
Office lease payments		2,295		337		520		542		559		337		-
Ground lease payments		6,792		108		144		144		144		144		6,108
Contractual obligations(3)		4,135		4,135		-		-		-		-		-
Total	$	309,717	$	19,755	$	50,716	$	55,914	$	11,630	$	162,312	$	9,390

(1) Based on the 30-day LIBOR rate as of March 31, 2015, as defined under the respective loan agreements.

(2) Reflects estimated payments to counterparties assuming that LIBOR is equal to 0.17625% from the effective date through the termination date of each respective interest rate swap.

(3) Includes commitments for tenant improvement and construction work related to obligations under certain tenant leases and vendor contracts.

Off Balance Sheet Arrangements

As of March 31, 2015, we did not have any off-balance sheet arrangements other than the one unconsolidated real estate entity which has been disclosed in the notes to our consolidated financial statements.

Cash Flows

Comparison of the Three Months Ended March 31, 2015 to the Three Months Ended March 31, 2014

The following table summarizes the cash flows of Rexford Industrial Realty, Inc. for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015			2014			Change
	(dollars in thousands)
Cash provided by operating activities	$	9,775		$	3,156		$	6,619
Cash used in investing activities	$	(49,255	)	$	(20,233	)	$	(29,022	)
Cash provided by financing activities	$	78,415		$	14,424		$	63,991

Net cash provided by operating activities. Net cash provided by operating activities increased by $6.6 million to $9.8 million for the three months ended March 31, 2015 compared to $3.2 million for the three months ended March 31, 2014. The increase is primarily attributable to incremental cash flows from property acquisitions completed after January 1, 2014 and fluctuations in working capital, partially offset by higher cash interest paid during the three months ended March 31, 2015 compared to the three months ended March 31, 2014.

Net cash used in investing activities. Net cash used in investing activities increased by $29.0 million to $49.3 million for the three months ended March 31, 2015 compared to $20.2 million for the three months ended March 31, 2014. The increase is primarily attributable to an increase of $17.3 million paid toward property acquisitions and construction and development projects for comparable periods and proceeds of $13.8 million received from property dispositions during the three months ended March 31, 2014, for which there was no comparable activity during the three months ended March 31, 2015.

Net cash provided by financing activities. Net cash provided by financing activities increased by $64.0 million to $78.4 million for the three months ended March 31, 2015 compared to $14.4 million for the three months ended March 31, 2014.  The increase is primarily attributable to the $176.6 million in net proceeds raised from sale of 11.5 million shares of our common stock during the three months ended March 31, 2015, partially offset by the use of $116.0 million of these proceeds to repay all of the borrowings outstanding on our unsecured revolving credit facility at the time of the offering.  

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Item 3.Quantitative and Qualitative Disclosures about Market Risk

Market risk refers to the risk of loss from adverse changes in market prices and interest rates. The primary market risk we face is interest rate risk. We are exposed to interest rate changes primarily as a result of debt used to satisfy various short-term and long-term liquidity needs, which bears interest at variable rates.  We use interest rate swaps to manage, or hedge, interest rate risks related to our borrowings.  Because actual interest rate movements over time are uncertain, our swaps pose potential interest rate risks, notably if interest rates fall.  We also expose ourselves to credit risk, which we attempt to minimize by contracting with highly-rated banking financial counterparties. For a summary of our variable-rate debt outstanding and our interest rate swaps, see Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.  

Based upon the amount of variable-rate debt outstanding as of March 31, 2015, if LIBOR were to increase by 50 basis points, the increase in interest expense on our variable rate debt would decrease our future earnings and cash flows by approximately $1.1 million annually. If LIBOR were to decrease by 50 basis points, the decrease in interest expense on our variable-rate debt would be approximately $0.4 million annually. This does not include $30 million of our variable- rate debt that has been effectively fixed through the use of interest rate swaps as of March 31, 2015.  

Interest risk amounts are our management’s estimates and were determined by considering the effect of hypothetical interest rates on our financial instruments. We calculate interest sensitivity by multiplying the amount of variable rate debt outstanding by the respective change in rate. The sensitivity analysis does not take into consideration possible changes in the balances or fair value of our floating rate debt.  These analyses do not consider the effect of any change in overall economic activity that could occur in that environment. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is processed, recorded, summarized, and reported within the time periods specified in the Security and Exchange Commission’s rules and forms and that such information is accumulated and communicated to management, including the Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by SEC Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of management, including our Co-Chief Executive Officers and Chief Financial Officer, of the effectiveness of the design and operation of the disclosure controls and procedures as of March 31, 2015, the end of the period covered by this report. Based on the foregoing, our Co-Chief Executive Officers and Chief Financial Officer concluded, as of that time, that our disclosure controls and procedures were effective at the reasonable assurance level.

No changes to our internal control over financial reporting were identified that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II. OTHER INFORMATION

Item 1. Legal Proceedings

On October 3, 2013, two pre-IPO investors filed a putative class action purportedly brought on behalf of the investors in Rexford Industrial Fund III (“RIF III”) in the Los Angeles County Superior Court. On February 14, 2014, a First Amended Complaint was filed adding an additional individual pre-IPO investor and putative class claims on behalf of investors in Rexford Industrial Fund IV, LLC (“RIF IV”).  This complaint also alleged that the communication of the proposed accommodation (in which Messrs. Schwimmer, Frankel and Ziman, together with certain other pre-IPO owners of the pre-IPO management companies agreed to return up to $32.1 million that they received in connection with our IPO and formation transactions) was materially misleading by not including disclosures regarding the lawsuit and claims asserted by plaintiffs.  On July 15, 2014, a Second Amended Complaint was filed withdrawing the class action allegations and the allegations concerning communication of the accommodation, and adding four additional plaintiff investors.  During the third quarter of 2014, the Company entered into settlement agreements with three of these four additional plaintiffs.  The aggregate amounts paid by the Company in these settlements were not material.   Plaintiffs asserted claims against the Company, RIF III, RIF IV, Rexford Industrial, LLC and Messrs. Schwimmer, Frankel and Ziman for breach of fiduciary duty, violation of certain California securities laws, negligent misrepresentation, and fraud. Plaintiffs alleged, among other things, that the terms of the Company’s formation transactions were unfair to investors in RIF III and RIF IV, that the consideration received by investors in RIF III and RIF IV in the formation transactions was inadequate, that the pre-IPO management companies were allocated unfair value in the formation transactions and that the disclosure documents related to the formation transactions were materially misleading.  Plaintiffs also requested to inspect the books and records of RIF III and RIF IV, which entities no longer exist, and further sought declaratory relief, unspecified recessionary damages, disgorgement, compensatory, punitive and exemplary damages, an accounting for unjust enrichment, and an award of costs including pre-judgment interest, attorneys’ and experts’ fees, and other unspecified relief. Defendants answered the Second Amended Complaint denying all allegations and asserting affirmative defenses.  During the second quarter of 2015, the Company entered into a settlement agreement with the remaining plaintiffs.  The aggregate amount paid by the Company in this settlement was not material.

Item 1A. Risk Factors

There have been no material changes to the risk factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None

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Item 6. Exhibits

Exhibit
3.1	Articles of Amendment and Restatement of Rexford Industrial Realty, Inc. (incorporated by reference to Exhibit 3.1 of Form S-11/A, filed by the registrant on July 15, 2013 (Registration No. 333-188806))
3.2	Amended and Restated Bylaws of Rexford Industrial Realty, Inc. (incorporated by reference to Exhibit 3.2 of Form S-11/A, filed by the registrant on July 15, 2013 (Registration No. 333-188806))
4.1	Form of Certificate of Common Stock of Rexford Industrial Realty, Inc. (incorporated by reference to Exhibit 4.1 of Form S-11/A, filed by the registrant on July 15, 2013 (Registration No. 333-188806))
10.1*	The Assumption Agreement dated as of January 21, 2015 between Laro Properties L.P., and Rexford Industrial-Imperial Highway, LLC, and The Lincoln National Life Insurance Company, as Lender
31.1*	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.3*	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.1*	The registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in 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.

* Filed herein

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto authorized.

	Rexford Industrial Realty, Inc.
May 8, 2015	/s/ Michael S. Frankel
	Michael S. Frankel
	Co-Chief Executive Officer (Principal Executive Officer)
May 8, 2015	/s/ Howard Schwimmer
	Howard Schwimmer
	Co-Chief Executive Officer (Principal Executive Officer)
May 8, 2015	/s/ Adeel Khan
	Adeel Khan
	Chief Financial Officer (Principal Financial and Accounting Officer)

49

EX-10.1

Exhibit 10.1

When Recorded Return to:

Kroll, McNamara, Evans & Delehanty, LLP

65 Memorial Road, Suite 300

West Hartford, CT  06107

Attention:  Adam F. Zweifler

ASSUMPTION AGREEMENT

THIS ASSUMPTION AGREEMENT (the “Agreement”) is made and entered effective as of the ___ day of January, 2015 by and among LARO PROPERTIES L.P., a California limited partnership (the “Seller”), REXFORD INDUSTRIAL – IMPERIAL HIGHWAY, LLC a Delaware limited liability company (the “Assuming Party”), and THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, an Indiana corporation (the “Lender”).

RECITALS:

A.Seller has heretofore executed and delivered to Lender that certain Promissory Note dated March 27, 2008, in the original principal amount of $6,000,000.00 (the “Note”).

B.As security for the Note, Seller has heretofore executed and delivered to Lender the following documents (hereinafter, together with the Note, the “Loan Documents”): (i) Deed of Trust, Security Agreement and Fixture Filing dated March 27, 2008 and filed with the Los Angeles County Recorder as Instrument Number 20080545579 (the “Deed of Trust”), (ii) Absolute Assignment of Rents and Profits and Collateral Assignment of Leases dated March 27, 2008 and filed with the Los Angeles County Recorder as Instrument Number 20080545580 (the “Assignment of Rents”); and (iii) Uniform Commercial Code Financing Statement No. 08-7152648829, filed on April 1, 2008 with the California Secretary of State.

C.The Loan Documents create a lien upon certain real property and improvements commonly referred to as 12907 Imperial Highway, in Los Angeles County, California, more fully described in the Deed of Trust (the “Property”).

D.Pursuant to the terms of the Deed of Trust, Seller is permitted to transfer the Property subject to the Deed of Trust to a purchaser approved by Lender upon payment to Lender of a fee equal to one percent (1%) of the outstanding balance of the Note at the time of transfer.

E.Seller desires to exercise its one-time right to transfer the Property by selling and conveying the Property to the Assuming Party subject to the Loan Documents, in consideration of which the Assuming Party will assume Seller’s obligations under the Loan Documents, as provided herein, and requests that Lender consent to such transfer and assumption.

NOW, THEREFORE, for and in consideration of One Hundred Dollars ($100), the above premises, the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Recitals.  The foregoing recitals are true, correct and complete in all respects and are incorporated herein by this reference.

2.Assumption. Upon execution of this Agreement, Seller shall convey the Property to the Assuming Party subject to the terms and conditions of the Note and the lien of and security interest created by the other Loan Documents.  The Assuming Party accepts the conveyance of the Property from Seller subject to the Loan Documents and hereby assumes the obligations of Seller under the Note and the other Loan Documents that arise or accrue on or after the Effective Date (defined below) and agrees from and after the Effective Date to pay the Note in accordance with, and as limited by, its terms (including the non-recourse provisions thereof) and to keep, observe and perform all of the covenants, agreements and obligations of the maker of the Note under the Loan Documents that arise or accrue on or after the Effective Date, according to, and as limited by, their terms.  For the avoidance of doubt, the Assuming Party shall not be liable for and shall have no responsibility in connection with any defaults under the Loan Documents related to facts or circumstances existing or occurring prior to the Effective Date, except for any condition of the Property that constitutes a continuing default following the Effective Date.

3.Consent to Transfer of the Premises and Assumption of the Loan Documents. The Lender, by execution hereof, consents to the transfer of the Property to the Assuming Party in consideration of the assumption by the Assuming Party of all obligations of Seller under the Note and the other Loan Documents, as modified hereby.

4.Amendment.  The Loan Documents are amended as follows:

(a)All references in the Loan Documents to the term “Note” or “Promissory Note” shall be deemed to refer to and mean the Note, as assumed by the Assuming Party.

(b)All references in the Loan Documents to the term “Deed of Trust” or “Deed of Trust, Security Agreement and Fixture Filing” or “Indenture” shall be deemed to refer to the Deed of Trust as assumed by the Assuming Party and as amended herein.

(c)All references in the Loan Documents to “Borrower” shall be deemed to refer to the Assuming Party.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

2

(d)Section 1.07 of the Deed of Trust is hereby amended to add a new section “(F)”, which reads as follows:

“(F)BORROWER represents, warrants and covenants (the items set forth below in this section being collectively the “Single Purpose Covenants”) as of the date of hereof and until such time as the indebtedness secured hereby is paid in full, that BORROWER will not:  

(i) change or permit to be changed its organizational documents, if such change would adversely impact the covenants set forth in the Loan Documents or otherwise violate any prohibited transfer or due on sale provisions set forth in the Loan Documents;

(ii) fail to qualify to do business and remain in good standing under the laws of the state in which it was formed, or fail to observe all material limited liability company formalities;

(iii) engage in any line of business or other activity other than: (i) owning, operating, managing leasing, improving and developing the Property, (ii) entering into and performing the obligations of BORROWER under the Loan Documents, and (iii) any and all, lawful activities incidental, necessary and appropriate thereto;

(iv) own any assets other than (i) the Property, and (ii) incidental personal property necessary for and used in connection with the ownership or operation of the Property;

(v) transfer or otherwise dispose of a material portion of its assets, or engage in any transfer of assets outside the ordinary course of its business;

(vi) form, acquire, hold or own any subsidiary, or make any investment in any other entity, regardless of whether the entity is an affiliate;

(vii) commingle its assets with assets of any other person or entity;

(viii) incur debt, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than the indebtedness evidenced by the Note and other than debt incurred in the ordinary course of business to vendors and suppliers of services to the Property not secured by the Property, or any portion thereof;

(ix) fail to maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those of any other person or entity or have its assets listed on the financial statement of any other entity; provided, however, that BORROWER’s financial position, assets,

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

3

liabilities, net worth and operating results may be included in the consolidated financial statements of an affiliate so long as BORROWER’s assets are listed on BORROWER’s own separate balance sheet and that any such consolidated financial statements contain a footnote indicating that BORROWER is a separate legal entity, that BORROWER’s assets and credit are not available to satisfy the debts and other obligations of such affiliate, and that BORROWER maintains separate books and records provided that the foregoing shall not preclude BORROWER from distributing available cash to its member(s) in the ordinary course of business to the extent not otherwise prohibited under the Loan Documents;

(x) maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from those of any other person or entity, regardless of whether such person or entity is related or an affiliate;

(xi) assume or guaranty or otherwise become obligated for the debts of any other person or entity, hold itself out to be responsible for the debts of any other person or entity, or otherwise pledge its assets for the benefit of any other person or entity (other than to Lender to secure the Note) or hold out its credit as being available to satisfy the obligations of any other person or entity;

(xii) make any loans or advances to any person or entity, regardless of whether such person or entity is related or an affiliate; or

(xiii) fail either to hold itself out to the public as a legal entity separate and distinct from any other person (including identifying itself as a division or part of any other person), or conduct its business solely in its own name (including the failure to use separate stationery, invoices and checks bearing its own name) or fail to correct any known misunderstanding regarding its separate identity.”

(e)Section 4.02 of the Deed of Trust is hereby amended to revise the notice addresses for the Borrower as follows:

Rexford Industrial – Imperial Highway, LLC

11620 Wilshire Boulevard, Suite 1000

Los Angeles, California

Attn: Victor Ramirez

5.Right to Transfer Extinguished.  The parties hereto acknowledge and agree that upon transfer of the Property to Assuming Party, the one-time right to transfer set forth in Section 1.07 of the Deed of Trust shall be extinguished and of no further force or effect.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

4

6.Confirmation and Ratification of the Loan Documents.  Except as expressly modified pursuant to the terms of this Agreement, all of the terms, covenants and conditions of the Loan Documents shall continue unamended and in full force and effect, and the Assuming Party  hereby confirms, ratifies and reaffirms all of such terms, covenants and conditions. The Assuming Party and Seller hereby acknowledge that (i) as of the date hereof, the outstanding principal balance of the indebtedness evidenced by the Note is $5,400,726.97, and (ii) as of the date hereof they have no defenses, offsets, or claims against the enforceability of the Note, Deed of Trust and other Loan Documents.

7.Confirmation of Lien Upon Property.  The Assuming Party acknowledges and agrees that the Deed of Trust constitutes a valid first lien upon the Property in favor of the Lender. The Property is and shall remain subject to and encumbered by the lien, charge and encumbrance of the Deed of Trust, and nothing herein contained shall affect or be construed to affect the lien or encumbrance of the Deed of Trust or the priority thereof over other liens or encumbrances. This Agreement does not constitute a novation.

8.Representations of Assuming Party.

(a)Assuming Party is not and will not be an "employee benefit plan" as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, and the assets of Assuming Party do not and will not constitute "plan assets" of one or more such plans for purposes of Title I of ERISA. Assuming Party is not and will not be a "governmental plan" within the meaning of Section 3(32) of ERISA and transactions by or with Assuming Party are not and will not be subject to state statutes applicable to Assuming Party regulating investments of and fiduciary obligations with respect to governmental plans.

(b)Assuming Party represents and warrants that, (i) the Assuming Party and each partner, shareholder, member, manager or beneficial owner of an twenty percent (20%) or greater interest in Assuming Party (collectively for the purpose of this paragraph 8(b) referred to as the “Assuming Party”) is in compliance with Executive Order 13224, 66 Fed. Reg. 49079 (September 25, 2001) (the “Order”) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act and related regulations, as may be amended or supplemented from time to time (the “Patriot Act”), (ii) Assuming Party is not on the specially designated nationals and blocked persons list, maintained by the Office of Foreign Asset Control (“OFAC”) or on any other list of terrorist or terrorist organizations that may be maintained pursuant to OFAC or any other anti-terrorism measures (collectively, the “List”), and (iii) the Assuming Party is not a person that has been determined to be subject to prohibitions contained in the Order, and (iv) Assuming Party is not directly owned or directly controlled by any persons on the List or has been determined to be subject to prohibitions contained in the Order.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

5

9.Release.

(a)From and after the date and time when the Property has been transferred to Assuming Party and Assuming Party has assumed the obligations of Seller with respect to the Loan Documents in accordance with this Agreement (the “Effective Date”), Lender releases Seller from liability pursuant to the Loan Documents; provided, however, Seller shall not be released from liability for and shall remain liable for all obligations and liability arising under the Loan Documents prior to the Effective Date, including, without limitation: (a) any liability of Seller for the non-recourse carveouts incurred or arising out of acts, omissions, or representations of Seller occurring at or before the Effective Date, whether or not such acts, omissions or the inaccuracy of such representations are discovered before or after such transfer; (b) any failure by Seller to comply with any federal, state, or local statute relating to hazardous waste and environmental laws during Seller's ownership of the Property whether or not such failure is discovered before or after the Effective Date; and (c) any losses, damages or costs sustained or incurred by Lender with respect to or arising out of the Property's noncompliance with any such hazardous waste and environmental laws at or before the time of the Effective Date whether such noncompliance is discovered before or after the Effective Date or the presence upon the Property at or before the time of the Effective Date of any hazardous materials, waste, or substances whether such presence of such hazardous materials, waste or substances is discovered before or after the Effective Date.

(b)Effective as of the Effective Date, Seller hereby fully and forever releases the Lender and any all servicer(s) of the Loan from all liability of any kind to Seller arising out of or in connection with the Loan, the Loan Documents listed on page 1 of this Agreement, and all other documents associated with the Loan.

10.Conditions Precedent.  This Agreement, and the consent and assumption contemplated hereby, shall become effective upon satisfaction of the following conditions:

(a)Lender’s receipt of this Agreement executed by all parties hereto;

(b)Lender’s receipt of the Environmental Indemnity Agreement, substantially in the form attached hereto as Exhibit A, executed by the Assuming Party;

(c)Lender’s receipt and approval of official UCC search results in the name of Seller and Assuming Party for searches of the California and the Delaware Secretary of State, showing no intervening encumbrances on the personal property collateral described in the Deed of Trust;

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

6

(d)Filing of Uniform Commercial Code Financing Statements (UCC-1s and UCC-3s), identifying the Assuming Party as the debtor, with the Delaware Secretary of State.

(e)Lender’s receipt and approval of  the Lender’s mortgagee title insurance policy;

(f)Lender’s receipt of the Assuming Party’s partnership agreement and a Certificate of Existence from the State of Delaware and evidence of qualification in the State of California;

(g)Lender’s receipt of certificates of insurance in the name of the Assuming Party and in accordance with the insurance requirements of the Deed of Trust;

(h)Lender’s receipt and approval of an opinion letter of counsel to the Assuming Party;

(i)Lender’s receipt of the transfer fee equal to one percent (1%) of the outstanding balance of the indebtedness evidenced by the Note; and

(j)Lender's receipt of the Assuming Party’s Federal Identification Number.

11.Miscellaneous.

(a)This Agreement is delivered in and shall in all respects be construed according to the laws of the State of California

(b)This Agreement shall be binding upon the parties hereto and their successors and assigns and shall inure to the benefit of and be binding on each and every future holder of the Note, including any successors and assigns of the Lender.

(c)The consent given herein by Lender shall not be deemed a consent or an agreement by the Lender to any future such sale, transfer, conveyance, encumbrance or mortgage, or a waiver of any of the rights of the Lender under the Note and other Loan Documents to declare any future sale, transfer, conveyance, encumbrance or mortgage an event of default under the Loan Documents and to exercise the rights and remedies provided in the Note, the Deed of Trust or in law.

12.Permitted Transfers.  Notwithstanding anything to contrary set forth in the Loan Documents, the Assuming Party may perform, or cause or allow to be performed, any of the following without the consent of the Lender: (i) transfers of direct or indirect

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

7

interests in Assuming Party to any Affiliate of Rexford Industrial Realty, Inc., a Maryland corporation (“RIR Inc.”), provided that RIR Inc. shall continue to Control the Assuming Party or such Affiliate; (ii) issuances and transfers of securities, options, warrants or other interests in RIR Inc., whether directly or indirectly; (iii) issuances and transfers of partnership interests and other interests in Rexford Industrial Realty L.P., a Maryland limited partnership (“RIR LP”) (including, without limitation, the adjustment of partnership units held by partners in RIR LP to reflect redemptions pertaining to the limited partner interests in RIR LP), whether directly or indirectly, provided that RIR Inc. shall continue to Control RIR LP; and (iv) a merger, consolidation or exchange of securities to which RIR Inc. or RIR LP is a party, provided that either (a) the surviving entity shall be RIR Inc. or RIR LP, as applicable, and RIR Inc. shall continue to Control RIR LP and Assuming Party or (b) the surviving entity shall be an Affiliate of the RIR Inc., provided that RIR Inc. shall continue to Control such Affiliate and the Assuming Party.

“Affiliate” shall mean, as to any person or entity, any other person or entity that, directly or indirectly, is in Control of, is Controlled by or is under common Control with such person or entity.

“Control” or “Controlled” shall mean, with respect to any person or entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person or entity, whether through the ability to exercise voting power, by contract or otherwise (subject, in each case, to customary reservations of rights in favor of other partners or members to approve the sale and/or refinancing of all or substantially all of such person's or entity’s assets and other customary major decisions).

[The remainder of this page has been intentionally left blank.]

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

8

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

SELLER:
LARO PROPERTIES L.P.,
a California limited partnership
By:	Elle Properties, Inc.,
	a California corporation
	Its General Partner
	By:	/s/ Greg St. Clair
		Greg St. Clair
		Vice President
	By:	/s/ Antonio Puente
		Antonio Puente
		Secretary

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA	)
	} ss.
COUNTY OF LOS ANGELES	)

On January 19, 2015, before me, Vanessa Carrion, a Notary Public in and for the State of California, personally appeared Greg St. Clair, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature /s/ Vanessa Carrion(Seal)

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

S-1

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA	)
	} ss.
COUNTY OF LOS ANGELES	)

On January 19, 2015, before me, Vanessa Carrio, a Notary Public in and for the State of California, personally appeared Antonio Puente, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature /s/ Vanessa Carrion(Seal)

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

S-2

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

ASSUMING PARTY:
REXFORD INDUSTRIAL – IMPERIAL HIGHWAY, LLC,
a Delaware limited liability company
	By:	Rexford Industrial Realty, L.P.,
		a Maryland limited partnership,
		its sole member
		By:	Rexford Industrial Realty, Inc.,
			a Maryland corporation,
			its General Partner
			By:	/s/ Howard Schwimmer
			Name:	Howard Schwimmer
			Title:	Co-Chief Executive Officer

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA	)
	} ss.
COUNTY OF Los Angeles	)

On January 15, 2015, before me, Judy Jones-Eschman, a Notary Public in and for the State of California, personally appeared Howard Schwimmer who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the within instrument in his authorized capacity and that by his signature on the within instrument, the person or entity upon behalf of which he acted executed the within instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature /s/ Judy Jones-Eschman(Seal)     

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

S-3

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed under seal as of the date first set forth above.

LENDER:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, an Indiana corporation
	By:	/s/ David Spearman
	Name:	David Spearman
	Title:	Vice President

STATE OF NORTH CAROLINA	)
	)  ss.
COUNTY OF GUILFORD	)

On this 16 day of January, 2015 before me, the undersigned Notary Public in and for the said State personally appeared David Spearman, known to me to be the Vice President of THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, and acknowledged to me that the said instrument is the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument.

/s/ M. Elizabeth Gof-Plourd

Notary Public

My Commission expires: 6/26/16

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

S-4

EXHIBIT A

Environmental Indemnity Agreement on file with Lender.

The Lincoln National Life Insurance Company

Assumption Agreement

Imperial Highway Assumption

Santa Fe Springs, California

A-1

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael S. Frankel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rexford Industrial Realty, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 8, 2015

By:	/s/ Michael S. Frankel
	Michael S. Frankel
	Co-Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Howard Schwimmer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rexford Industrial Realty, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 8, 2015

By:	/s/ Howard Schwimmer
	Howard Schwimmer
	Co-Chief Executive Officer

EX-31.3

Exhibit 31.3

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Adeel Khan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rexford Industrial Realty, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 8, 2015

By:	/s/ Adeel Khan
	Adeel Khan
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Rexford Industrial Realty, Inc. (the “Company”) for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael S. Frankel, Co-Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Michael S. Frankel

Michael S. Frankel

Co-Chief Executive Officer

May 8, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Rexford Industrial Realty, Inc. (the “Company”) for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Howard Schwimmer, Co-Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Howard Schwimmer

Howard Schwimmer

Co-Chief Executive Officer

May 8, 2015

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Rexford Industrial Realty, Inc. (the “Company”) for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Adeel Khan, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Adeel Khan

Adeel Khan

Chief Financial Officer

May 8, 2015

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014 Property	Dec. 31, 2014
Summary Of Significant Accounting Policies [Line Items]
Number of operating properties sold		2
Allocation period	1 year
Asset acquisition capitalized acquisition costs	$ 36,000	$ 42,000
REIT annual taxable income distribution requirement percentage	90.00%
Income tax provision	0	0
Reserve for allowance for doubtful accounts	1,300,000		1,000,000
Provision for doubtful accounts	400,000	400,000
Debt Issuance Cost	$ 700,000
Site Improvements
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	20 years
Minimum | Building
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	10 years
Maximum | Building
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	30 years

XML

Operating Leases - Future Minimum Base Rate for Predecessor Under Operating Leases (Detail) (USD $)	Mar. 31, 2015
Operating Leases, Future Minimum Payments Receivable [Abstract]
2016	$ 69,620,000
2017	50,777,000
2018	33,894,000
2019	23,121,000
2020	16,988,000
Thereafter	21,799,000
Total	$ 216,199,000

XML

Note Receivable - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2015 NoteReceivable	Dec. 31, 2014 NoteReceivable
Notes Receivables
Number of mortgage notes receivable	1	1

XML

Equity - Summary of the Components of Changes in Accumulated Other Comprehensive Loss (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity [Abstract]
Balance at January 1, 2015	$ (1,331,000)
Other comprehensive loss before reclassifications	(1,982,000)
Amounts reclassified from accumulated other comprehensive loss to interest expense	105,000
Net current period other comprehensive income (loss)	(1,877,000)	300,000
Less other comprehensive loss attributable to noncontrolling interests	61,000
Other comprehensive loss attributable to common stockholders	(1,816,000)
Balance at March 31, 2015	$ (3,147,000)

XML

Interest Rate Contracts - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Derivative [Line Items]
Number of derivative instruments	2
Notes payable	$ 269,541,000	$ 356,362,000
Additional amount reclassified from AOCI as an increase to interest expense	1,307,000
Fair value of derivatives in a net liability position	3,368,000
Variable Rate Debt | Term Loan One
Derivative [Line Items]
Notes payable	60,000,000
Variable Rate Debt | Term Loan Facility
Derivative [Line Items]
Notes payable	100,000,000
Interest Rate Swap 1
Derivative [Line Items]
Interest rate swap agreement, notional amount	30,000,000
Interest rate swap agreement, effective date	Jan. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest rate swap, fixed interest rate	3.726%
Interest Rate Swap 2
Derivative [Line Items]
Interest rate swap agreement, notional amount	30,000,000
Interest rate swap agreement, effective date	Jul. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest rate swap, fixed interest rate	3.91%
Interest Rate Swap 3
Derivative [Line Items]
Interest rate swap agreement, notional amount	50,000,000
Interest rate swap agreement, effective date	Aug. 14, 2015
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest rate swap, fixed interest rate	1.79%
Interest Rate Swap 4
Derivative [Line Items]
Interest rate swap agreement, notional amount	$ 50,000,000
Interest rate swap agreement, effective date	Feb. 16, 2016
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest rate swap, fixed interest rate	2.005%

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Intangible Assets - Summary of Acquired Lease Intangible Assets and Liabilities (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, net	$ 26,504,000	$ 28,136,000
Acquired lease intangible liabilities, net	(2,903,000)	(3,016,000)
In-place Lease Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, gross	39,385,000	37,467,000
Accumulated amortization	(16,193,000)	(12,975,000)
Acquired lease intangible assets, net	23,192,000	24,492,000
Above Market Tenant Leases
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, gross	5,002,000	4,971,000
Accumulated amortization	(1,690,000)	(1,327,000)
Acquired lease intangible assets, net	3,312,000	3,644,000
Below Market Tenant Leases
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible liabilities, gross	(3,726,000)	(3,514,000)
Accumulated accretion	1,060,000	743,000
Acquired lease intangible liabilities, net	(2,666,000)	(2,771,000)
Above Market Ground Lease
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible liabilities, gross	(290,000)	(290,000)
Accumulated accretion	53,000	45,000
Acquired lease intangible liabilities, net	$ (237,000)	$ (245,000)

XML

Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Future Minimum Commitment Under Ground Lease and Corporate Office Lease

The future minimum commitment under our ground lease and corporate office lease as of March 31, 2015 is as follows:

	Office Lease		Ground Rent
April 1, 2015 - December 31, 2015	$	337,000	$	108,000
2016		520,000		144,000
2017		542,000		144,000
2018		559,000		144,000
2019		337,000		144,000
Thereafter		-		6,108,000
Total	$	2,295,000	$	6,792,000

XML

Subsequent Events - Additional Information (Detail) (USD $)	3 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended
	Mar. 31, 2015 Buildings sqft	Apr. 01, 2015	Apr. 30, 2015	May 01, 2015 Buildings sqft
Subsequent Event [Line Items]
Maturity Date	Jul. 01, 2015
Purchase Price	$ 52,355,000
Number of Buildings	8
Area of real estate property	10,300,000
Conversion of common units to common stock, shares	26,658
Subsequent Event
Subsequent Event [Line Items]
Amount used to repay secured loan		10,100,000
Common stock aggregate offering amount			125,000,000
Conversion of common units to common stock, shares			27,614
Subsequent Event | S Norwalk Boulevard
Subsequent Event [Line Items]
Purchase Price			9,600,000
Number of Buildings			2
Date of Acquisition			Apr. 30, 2015
Area of land			10
Subsequent Event | 16221 Arthur Street
Subsequent Event [Line Items]
Purchase Price				$ 5,800,000
Number of Buildings				1
Date of Acquisition				May 01, 2015
Area of real estate property				61,372
Subsequent Event | Industrial building | S Norwalk Boulevard
Subsequent Event [Line Items]
Area of real estate property			26,362
Subsequent Event | Office building | S Norwalk Boulevard
Subsequent Event [Line Items]
Area of real estate property			12,000

XML

Interest Rate Contracts - Impact of Interest Rate Swaps on Consolidated Statements of Operations - (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instrument Detail [Abstract]
Amount of gain (loss) recognized in AOCI on derivatives (effective portion)	$ (1,982,000)	$ 300,000
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)	$ (105,000)

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income (loss) from continuing operations	$ 81,000	$ (717,000)
Net (income) loss from continuing operations attributable to noncontrolling interests	(4,000)	75,000
Income from continuing operations attributable to participating securities	(50,000)	(16,000)
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc.	27,000	(658,000)
Income from discontinued operations		2,146,000
Income from discontinued operations attributable to noncontrolling interests		(227,000)
Income from discontinued operations attributable to Rexford Industrial Realty, Inc.		1,919,000
Net income	81,000	1,429,000
Noncontrolling interests	4,000	152,000
Participating securities	50,000	16,000
Rexford Industrial Realty, Inc. common stockholders	$ 27,000	$ 1,261,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted	50,683,528	25,419,418
Earnings per share - Basic and Diluted:
Net income (loss) from continuing operations attributable to common stockholders		$ (0.03)
Net income from discontinued operations attributable to common stockholders		$ 0.08
Net income attributable to common stockholders		$ 0.05

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

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.

Discontinued Operations

Discontinued Operations

On April 14, 2014, the FASB issued Accounting Standards Update 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”).  Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 further expands the disclosure requirements for disposals that meet the definition of a discontinued operation, and requires entities to disclose information about disposals of individually significant components.  We elected to adopt ASU 2014-08 early, beginning in the fiscal quarter ended September 30, 2014.  The adoption of ASU 2014-08 has and will likely result in fewer property sales being classified as discontinued operations.

During the three months ended March 31, 2014, we sold two of our operating properties.  As these properties were sold and classified as held for sale prior to the adoption of ASU 2014-08, the revenues and expenses of these properties are reported as discontinued operations in the consolidated statements of operations for all periods presented through the date of the disposition.  Furthermore, the gain (loss) on sale of these properties is reported as discontinued operations in the consolidated statements of operations in the period the properties are sold. See Note 13.

Investment in Real Estate

Investment in Real Estate

Acquisitions

When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities.  The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year.

We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use, such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information.  

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 costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred.

The difference between the fair value and the face value of debt assumed 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 is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date.

For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs.  We capitalized $36,000 and $42,000 in acquisition costs during the three months ended March 31, 2015 and 2014, respectively.  See Note 3.

Capitalization of Costs

We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize interest, insurance, real estate taxes and certain general and administrative costs, including direct payroll, bonus and noncash equity compensation, of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets.

Depreciation and Amortization

Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs 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 regards 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. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized.

The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements.

As discussed above in investments in real estate, 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 intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term.

Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.

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 Topic 360: Property, Plant, and Equipment, 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. In order 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.

Investment in Unconsolidated Real Estate

Investment in Unconsolidated Real Estate

Investments in unconsolidated real estate in which we have the ability to exercise significant influence (but not control) are accounted for under the equity method of investment.  Under the equity method, we initially record our investment at cost, and subsequently adjust for equity in earnings or losses and cash contributions and distributions. Any difference between the carrying amount of these investments on the balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in income (loss) from unconsolidated real estate over the life of the related asset. Under the equity method of accounting, our net equity investment is reflected within the consolidated balance sheets, and our share of net income or loss from the joint ventures is included within the consolidated statements of operations.  See Note 12.

Income Taxes

Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (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 that we derive from our REIT qualifying activities. 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 income tax at regular corporate rates, 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 (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014.

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, 2015 and December 31, 2014, we have not established a liability for uncertain tax positions.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

FASB 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 8.

Revenue Recognition

Revenue Recognition

We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

Estimated reimbursements from tenants for real estate taxes, 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. Lease termination fees, which are included in rental revenues in the accompanying consolidated statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant.

Revenues from management, leasing and development services are recognized when the related services have been provided and earned.

The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions.

Valuation of Receivables

Valuation of Receivables

We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. 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. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We recorded a provision for doubtful accounts of approximately $0.4 million and $0.4 million for the three months ended March 31, 2015 and 2014, respectively, as a reduction to rental revenues in our consolidated statements of operations. We had a $1.3 million and $1.0 million reserve for allowance for doubtful accounts as of March 31, 2015 and December 31, 2014, respectively.

Equity Based Compensation

Equity Based Compensation

We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation.  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.  The total compensation expense for these awards is based upon the fair market value of the shares on the grant date, adjusted for estimated forfeitures.  See Note 14.

Equity Offering Costs

Equity Offering Costs

Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in capital.

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, shares of unrestricted stock that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing 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 shares of common stock outstanding for the period. Diluted EPS is computed using the weighted average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15.

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.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs.

On April 7, 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (“ASU 2015-03”).  ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be 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. ASU 2015-03 is effective for annual and interim periods beginning on or after December 15, 2015, with early adoption permitted on a retrospective basis.  We have elected to adopt ASU 2015-03 early, beginning with the current quarter ended March 31, 2015.  As a result of the adoption of ASU 2015-03, we have reclassified approximately $0.7 million of net debt issuance costs from an asset (previously recorded in the line item “Deferred loan costs, net” in the consolidated balance sheets) to a reduction in the carrying amount of our notes payable as of December 31, 2014.  ASU 2015-03 also expands disclosure requirements to include the face amount of the debt liability and the effective interest rate in the notes to the consolidated financial statements.  See Note 6.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 requires reporting entities to evaluate whether they should consolidate certain legal entities.  ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This ASU affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We are currently assessing the potential impact that the adoption of the ASU 2015-02 will have on our consolidated financial statements.

On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”).  ASU 2014-09 establishes principles for reporting the nature, amount, timing and uncertainty of revenues and cash flows arising from an entity's contracts with customers. The core principle of the new standard is that an entity recognizes revenue to represent the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us in the first quarter of 2017 and will replace most existing revenue recognition guidance within GAAP. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating ASU 2014-09 to determine its impact on our consolidated financial statements and related disclosures, as well as the transition method to apply the new standard.

XML

Notes Payable - Summary of Components and Significant Terms of Our Indebtedness (Detail) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015		Jan. 21, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Principal amount	$ 269,879,000			$ 357,076,000
Less: unamortized discount and deferred loan costs	(338,000)			(714,000)
Carrying value	269,541,000			356,362,000
Contractual Maturity Date	Jul. 01, 2015
LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Term Loan One
Debt Instrument [Line Items]
Debt Instrument, description of variable rate basis	LIBOR	[1]
Contractual Interest Rate	2.21%	[1],[2]
Term Loan One | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.90%	[1]
Term Loan two
Debt Instrument [Line Items]
Debt Instrument, description of variable rate basis	LIBOR	[3]
Contractual Interest Rate	2.00%	[2],[3]
Term Loan two | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.55%	[3]
Unsecured Term Loan Facility
Debt Instrument [Line Items]
Debt Instrument, description of variable rate basis	LIBOR
Contractual Interest Rate	1.53%	[2]
Unsecured Term Loan Facility | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.35%
12907 Imperial Highway
Debt Instrument [Line Items]
Contractual Maturity Date			Apr. 01, 2018
Fixed interest rate			5.95%
Rif Glendale Commerce Center Llc
Debt Instrument [Line Items]
Debt Instrument, description of variable rate basis	LIBOR
Contractual Interest Rate	2.18%	[2]
Rif Glendale Commerce Center Llc | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Fixed Rate Debt | The Park
Debt Instrument [Line Items]
Principal amount	3,141,000			3,173,000
Less: unamortized discount and deferred loan costs	(159,000)			(161,000)
Contractual Maturity Date	Mar. 01, 2031
Fixed interest rate	5.125%	[4]
Contractual Interest Rate	5.36%	[2],[4]
Fixed Rate Debt | 2980 San Fernando
Debt Instrument [Line Items]
Principal amount	10,105,000			10,153,000
Less: unamortized discount and deferred loan costs	70,000			139,000
Contractual Maturity Date	Jul. 01, 2015
Fixed interest rate	5.088%	[4],[5]
Contractual Interest Rate	2.33%	[2],[5]
Fixed Rate Debt | 12907 Imperial Highway
Debt Instrument [Line Items]
Principal amount	5,383,000
Less: unamortized discount and deferred loan costs	390,000
Contractual Maturity Date	Apr. 01, 2018
Fixed interest rate	5.95%	[6]
Contractual Interest Rate	3.85%	[2]
Variable Rate Debt | Term Loan One
Debt Instrument [Line Items]
Principal amount	60,000,000	[1]		60,000,000	[1]
Less: unamortized discount and deferred loan costs	(342,000)	[1]		(362,000)	[1]
Carrying value	60,000,000
Contractual Maturity Date	Aug. 01, 2019	[1],[7]
Variable Rate Debt | Term Loan two
Debt Instrument [Line Items]
Principal amount	48,500,000	[3]		48,500,000	[3]
Less: unamortized discount and deferred loan costs	(297,000)	[3]		(330,000)	[3]
Contractual Maturity Date	Jun. 24, 2017	[3],[7]
Variable Rate Debt | Unsecured Term Loan Facility
Debt Instrument [Line Items]
Principal amount	100,000,000			100,000,000
Contractual Maturity Date	Jun. 11, 2019
Variable Rate Debt | RIF V - Glendale Commerce Center, LLC
Debt Instrument [Line Items]
Principal amount	42,750,000			42,750,000
Contractual Maturity Date	May 01, 2016	[8]
Unsecured Credit Facility
Debt Instrument [Line Items]
Principal amount				$ 92,500,000
Contractual Maturity Date	Jun. 11, 2018	[7]
Debt Instrument, description of variable rate basis	LIBOR	[9]
Contractual Interest Rate	0.00%	[2]
Unsecured Credit Facility | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.40%	[9]

[1] Loan is secured by six properties. As of March 31, 2015, $30 million of this $60 million variable-rate term loan has been effectively fixed through the use of an interest rate swap. See Note 8.

[2] Reflects the effective interest rate at March 31, 2015 and includes the effect of amortization of discounts/premiums and deferred loan costs.

[3] Loan is secured by eight properties.

[4] Monthly payments of interest and principal based on 20-year amortization table.

[5] Monthly payments of interest and principal based on 30-year amortization table

[6] Monthly payments of interest and principal based on 30-year amortization table, with a balloon payment at maturity.

[7] One additional one year extension available at the borrower’s option.

[8] Two additional one year extensions available at the borrower’s option.

[9] The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the unsecured revolving credit facility if the balance is under $100 million or over $100 million, respectively.

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Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $)	Mar. 31, 2015
ASSETS
Land(1)	$ 24,554,000	[1]
Buildings and improvements	25,945,000
Tenant improvements	620,000
Acquired lease intangible assets(2)	1,950,000	[2]
Other acquired assets(4)	82,000	[3]
Total assets acquired	53,151,000
Liabilities
Acquired lease intangible liabilities(3)	212,000	[4]
Notes payable	5,874,000
Other assumed liabilities(4)	360,000	[3]
Total liabilities assumed	6,446,000
Net assets acquired	$ 46,705,000

[1] The allocation to land includes $29,000 of capitalized acquisition costs related to the purchase of 9401 De Soto Avenue, which was accounted for as an asset acquisition.

[2] Represents $1,918,000 and $32,000 of in-place leases and above-market leases with a weighted average amortization period of 3.2 years and 3.0 years, respectively.

[3] Includes other working capital assets acquired and liabilities assumed, respectively, at the time of acquisition.

[4] Represents below-market leases with a weighted average amortization period of 4.1 years

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

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:

	Three Months Ended March 31,
	2015			2014
Numerator:
Net income (loss) from continuing operations	$	81,000		$	(717,000	)
Net (income) loss from continuing operations attributable to noncontrolling interests		(4,000	)		75,000
Income from continuing operations attributable to participating securities		(50,000	)		(16,000	)
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc.	$	27,000		$	(658,000	)
Income from discontinued operations		-			2,146,000
Income from discontinued operations attributable to noncontrolling interests		-			(227,000	)
Income from discontinued operations attributable to participating securities		-			-
Income from discontinued operations attributable to Rexford Industrial Realty, Inc.	$	-		$	1,919,000
Net income	$	81,000		$	1,429,000
Net income attributable to noncontrolling interests		(4,000	)		(152,000	)
Net income attributable to participating securities		(50,000	)		(16,000	)
Net income attributable to Rexford Industrial Realty, Inc.	$	27,000		$	1,261,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted		50,683,528			25,419,418
Earnings per share - Basic and Diluted:
Net income (loss) from continuing operations attributable to common stockholders	$	-		$	(0.03	)
Net income from discontinued operations attributable to common stockholders	$	-		$	0.08
Net income attributable to common stockholders	$	-		$	0.05

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Notes Payable - Additional Information (Detail) (USD $)	3 Months Ended	0 Months Ended
	Mar. 31, 2015	Jan. 21, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Assumption of loan in connection with acquisition of real estate	$ 5,401,000
Maturity Date	Jul. 01, 2015
Line of Credit Facility, Additional Availability	200,000,000
Notes payable	269,541,000		356,362,000
Credit facility maximum future borrowing capacity	600,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum ratio of total indebtedness to total asset value	60.00%
Maximum ratio of secured debt to total asset value	45.00%
Maximum ratio of recourse debt to total asset	15.00%
Minimum tangible net worth required	283,622,250
Maximum debt to tangible net worth ratio required for equity proceeds	75.00%
Minimum ratio of EBITDA to fixed charges	1.50%
Maximum ratio of unsecured debt to the value of the unencumbered asset pool	60.00%
Minimum ratio of NOI unsecured interest expense	1.75%
Funds from operations percentage	95.00%
Current borrowing capacity	200,000,000
Maturity Date	Jun. 11, 2018
Term Loan
Debt Instrument [Line Items]
Current borrowing capacity	100,000,000
Maturity Date	Jun. 11, 2019
Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.20%
Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.30%
Federal Funds Rate Plus
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
LIBOR | Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.30%
LIBOR | Minimum | Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
LIBOR | Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.90%
LIBOR | Maximum | Term Loan
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.85%
12907 Imperial Highway
Debt Instrument [Line Items]
Assumption of loan in connection with acquisition of real estate		5,400,000
Unamortized debt premium		473,000
Fixed interest rate		5.95%
Amortization period		30 years
Maturity Date		Apr. 01, 2018
RIF V - Glendale Commerce Center, LLC | Term Loan
Debt Instrument [Line Items]
Notes payable	$ 60,000,000
Debt service coverage ratio	0.0110

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Equity - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended
	Feb. 03, 2015	Mar. 31, 2015	Mar. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock, shares	11,500,000
Common stock share price	$ 16.00
Issuance of common stock, net	$ 176,300,000	$ 184,000,000
Underwriting discount and offering costs	7,700,000	7,668,000
Net proceeds from public offering used in exchange for common units of partnership interests in OP Units	11,500,000
Conversion of common units to common stock, shares		26,658
Conversion of common units to common stock		297,000
2013 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock and/or LTIP units available for issuance		2,272,689
Common stock, shares reserved for future issuance		1,818,389
Recognized equity compensation expense related to restricted common stock		367,000	172,000
Capitalized compensation expense related to restricted common stock		18,000	29,000
Unrecognized compensation expense related to non-vested shares		4,500,000
Employee service share based compensation nonvested awards total compensation cost not yet capitalized		300,000
Weighted average remaining vesting period		40 months
Noncontrolling Interest
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Conversion of common units to common stock		$ (297,000)
Operating Partnership | Noncontrolling Interest | Equity
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of operating partnership units		2,296,686
Noncontrolling interest percentage ownership in Operating Partnership		4.00%

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Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Feb. 25, 2014
Commitments And Contingencies [Line Items]
Accommodation	$ 32,100,000
Estimated remediation costs			1,300,000
Holdback Escrow Seller Funded			1,300,000
Holdback Escrow buyer funded			100,000
Maximum seller liability remediation costs			1,300,000
Contingent liability	1,200,000	1,200,000
Indemnification asset	1,200,000	1,200,000
Ground lease, expiration date	Jun. 01, 2062
Other commitments	4,100,000
Concentration risk, credit risk, financial instrument, maximum exposure	$ 250,000
Concentration risk, customer	10
Base Rent | Customer Concentration Risk
Commitments And Contingencies [Line Items]
Concentration risk, percentage	14.00%

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Intangible Assets - Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Acquired Finite Lived Intangible Assets [Line Items]
Amortization of above (below) market lease intangibles, net	$ 39,000		$ 81,000
Accretion Of Above Market Ground Lease Intangible	(8,000)	[1]	(8,000)	[1]
In-place Lease Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Amortization of in-place lease intangibles	3,218,000	[2]	2,086,000	[2]
Net Above (Below) Market Tenant Leases
Acquired Finite Lived Intangible Assets [Line Items]
Amortization of above (below) market lease intangibles, net	$ 47,000	[3]	$ 88,000	[3]

[1] The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated statements of operations for the periods presented.

[2] The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated statements of operations for the periods presented.

[3] The amortization of net above/(below)-market tenant leases is recorded as a decrease to rental revenues in the consolidated statements of operations for the periods presented.

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Organization

3 Months Ended

Mar. 31, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

1. 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 primarily located in Southern California infill markets.  As of March 31, 2015, our consolidated portfolio consisted of 102 properties with approximately 10.3 million rentable square feet.  We also own a 15% interest in a joint venture that owns one property with approximately 0.5 million square feet, which we also manage.   In addition, we currently manage an additional 19 properties with approximately 1.2 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).

Basis of Presentation

As of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, 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.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the U.S. 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, 2015. The interim financial statements should be read in conjunction with the combined and consolidated financial statements in our 2014 Annual Report on Form 10-K and the notes thereto. Certain prior period amounts have been reclassified to conform to current period presentation. 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.

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.

We consolidate all entities that are wholly owned and those in which we own less than 100% but control, as well as any variable interest entities in which we are the primary beneficiary. We evaluate our ability to control an entity and whether the entity is a variable interest entity and we are the primary beneficiary through consideration of the substantive terms of the arrangement to identify which enterprise has the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Investments in entities in which we do not control but over which we have the ability to exercise significant influence over operating and financial policies are presented under the equity method. Investments in entities that we do not control and over which we do not exercise significant influence are carried at the lower of cost or fair value, as appropriate. Our ability to correctly assess our influence and/or control over an entity affects the presentation of these investments in our consolidated financial statements.

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Commitment and Contingencies- Future Minimum Commitment (Detail) (USD $)	Mar. 31, 2015
Office Lease
Operating Leased Assets [Line Items]
April 1, 2015 - December 31, 2015	$ 337,000
2016	520,000
2017	542,000
2018	559,000
2019	337,000
Total	2,295,000
Ground Rent
Operating Leased Assets [Line Items]
April 1, 2015 - December 31, 2015	108,000
2016	144,000
2017	144,000
2018	144,000
2019	144,000
Thereafter	6,108,000
Total	$ 6,792,000

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Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Business Acquisition [Line Items]
Asset acquisition capitalized acquisition costs	$ 36,000		$ 42,000
Acquired lease intangible assets(2)	1,950,000	[1]
In-place Leases
Business Acquisition [Line Items]
Acquired lease intangible assets(2)	1,918,000
Amortization period of acquired intangible assets	3 years 2 months 12 days
Above-Market Leases
Business Acquisition [Line Items]
Acquired lease intangible assets(2)	32,000
Amortization period of acquired intangible assets	3 years
Below-Market Leases
Business Acquisition [Line Items]
Amortization period of acquired intangible assets	4 years 1 month 6 days
9401 De Soto Avenue
Business Acquisition [Line Items]
Asset acquisition capitalized acquisition costs	$ 29,000

[1] Represents $1,918,000 and $32,000 of in-place leases and above-market leases with a weighted average amortization period of 3.2 years and 3.0 years, respectively.

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Notes Payable (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Summary of Components and Significant Terms of Our Indebtedness

The following table summarizes the balance of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015			December 31, 2014
Principal amount	$	269,879,000		$	357,076,000
Less: unamortized discount and deferred loan costs		(338,000	)		(714,000	)
Carrying value	$	269,541,000		$	356,362,000

The following table summarizes the components and significant terms of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Principal Amount		Unamortized Discount and Deferred Loan Costs			Principal Amount		Unamortized Discount and Deferred Loan Costs			Contractual Maturity Date		Contractual Interest Rate			Effective Interest Rate (1)
Fixed Rate Debt
The Park	$	3,141,000	$	(159,000	)	$	3,173,000	$	(161,000	)	3/1/2031			5.125%	(2)		5.36	%
2980 San Fernando		10,105,000		70,000			10,153,000		139,000		7/1/2015			5.088%	(3)		2.33	%
12907 Imperial Highway		5,383,000		390,000			-		-		4/1/2018			5.950%	(4)		3.85	%
Variable Rate Debt									-
RIF V - Glendale Commerce Center, LLC		42,750,000		-			42,750,000		-		5/1/2016	(5)	LIBOR + 2.00%				2.18	%
Term Loan (6)		60,000,000		(342,000	)		60,000,000		(362,000	)	8/1/2019	(7)	LIBOR + 1.90%				2.21	%
Term Loan (8)		48,500,000		(297,000	)		48,500,000		(330,000	)	6/24/2017	(7)	LIBOR + 1.55%				2.00	%
Unsecured Term Loan Facility		100,000,000		-			100,000,000		-		6/11/2019		LIBOR + 1.35%				1.53	%
Unsecured Credit Facility				-					-
Unsecured Credit Facility		-		-			92,500,000		-		6/11/2018	(7)	LIBOR + 1.40%		(9)		0.00	%
Total	$	269,879,000	$	(338,000	)	$	357,076,000	$	(714,000	)

(1)     Reflects the effective interest rate at March 31, 2015 and includes the effect of amortization of discounts/premiums and deferred loan costs.

(2)     Monthly payments of interest and principal based on 20-year amortization table.

(3)     Monthly payments of interest and principal based on 30-year amortization table.

(4)     Monthly payments of interest and principal based on 30-year amortization table, with a balloon payment at maturity.

(5)     Two additional one year extensions available at the borrower’s option.

(6)  Loan is secured by six properties. As of March 31, 2015, $30 million of this $60 million variable-rate term loan has been effectively fixed through the use of an interest rate swap. See Note 8.

(7)     One additional one year extension available at the borrower’s option.

(8)     Loan is secured by eight properties.

(9)     The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the unsecured revolving credit facility if the balance is under $100 million or over $100 million, respectively.

Summary of Aggregate Future Minimum Payments of Debt

The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt discounts/premiums and deferred loan costs, as of March 31, 2015 and does not consider extension options available to us as noted above:

April 1, 2015 - December 31, 2015	$	10,286,000
2016		43,002,000
2017		48,766,000
2018		5,208,000
2019		160,158,000
Thereafter		2,459,000
Total	$	269,879,000

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Note Receivable (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Summary of Notes Receivable

The following table summarizes the balance of our notes receivable:

	March 31, 2015			December 31, 2014
Face Amount	$	13,825,000		$	13,896,000
Unrecognized Accretable Yield		(690,000	)		(759,000	)
Note Receivable	$	13,135,000		$	13,137,000

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Interest Rate Contracts - Summary of Interest Rate Swap Agreements (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015		Dec. 31, 2014
Derivative [Line Items]
Interest rate swap, fair value	$ 3,279,000		$ 1,402,000
Interest Rate Swap 1
Derivative [Line Items]
Interest rate swap agreement, effective date	Jan. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest Strike Rate	3.726%
Interest rate swap, fair value	749,000	[1]	457,000	[1]
Interest rate swap agreement, notional amount	30,000,000
Interest Rate Swap 1 | Derivative Financial Instruments, Liabilities
Derivative [Line Items]
Interest rate swap agreement, effective date	Jan. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest Strike Rate	1.826%
Interest Rate Swap 2
Derivative [Line Items]
Interest rate swap agreement, effective date	Jul. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest Strike Rate	3.91%
Interest rate swap, fair value	792,000	[1]	408,000	[1]
Interest rate swap agreement, notional amount	30,000,000
Interest Rate Swap 2 | Derivative Financial Instruments, Liabilities
Derivative [Line Items]
Interest rate swap agreement, effective date	Jul. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest Strike Rate	2.01%
Interest Rate Swap 3
Derivative [Line Items]
Interest rate swap agreement, effective date	Aug. 14, 2015
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest Strike Rate	1.79%
Interest rate swap, fair value	900,000	[1]	277,000	[1]
Interest rate swap agreement, notional amount	50,000,000
Interest Rate Swap 3 | Derivative Financial Instruments, Liabilities
Derivative [Line Items]
Interest rate swap agreement, effective date	Aug. 14, 2015
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest Strike Rate	1.79%
Interest Rate Swap 4
Derivative [Line Items]
Interest rate swap agreement, effective date	Feb. 16, 2016
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest Strike Rate	2.005%
Interest rate swap, fair value	838,000	[1]	260,000	[1]
Interest rate swap agreement, notional amount	$ 50,000,000
Interest Rate Swap 4 | Derivative Financial Instruments, Liabilities
Derivative [Line Items]
Interest rate swap agreement, effective date	Feb. 16, 2016
Interest rate swap agreement, termination date	Dec. 14, 2018
Interest Strike Rate	2.005%

[1] We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. As of March 31, 2015 and December 31, 2014, 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 consolidated balance sheets.

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Investments in Real Estate - Summary of Combined Results from Operations of Acquisitions (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Business Combinations [Abstract]
Revenues	$ 469,000
Net Income	$ 6,000

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Operating Leases (Tables)

3 Months Ended

Mar. 31, 2015

Leases Operating [Abstract]

Future Minimum Base Rent Under Non-cancelable Operating Leases

Future minimum base rent under operating leases as of March 31, 2015 is summarized as follows:

Twelve months ending March 31:
2016	$	69,620,000
2017		50,777,000
2018		33,894,000
2019		23,121,000
2020		16,988,000
Thereafter		21,799,000
Total	$	216,199,000

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Interest Rate Contracts (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014:

						Fair Value(1)				Notional Amount in Effect
Derivative Instrument	Effective Date	Maturity Date	Interest Strike Rate			March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Liabilities:
Interest Rate Swap	1/15/2015	2/15/2019		1.826	%	$	749,000	$	457,000	$	30,000,000	$	-
Interest Rate Swap	7/15/2015	2/15/2019		2.010	%	$	792,000	$	408,000	$	-	$	-
Interest Rate Swap	8/14/2015	12/14/2018		1.790	%	$	900,000	$	277,000	$	-	$	-
Interest Rate Swap	2/16/2016	12/14/2018		2.005	%	$	838,000	$	260,000	$	-	$	-

· We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities.  As of March 31, 2015 and December 31, 2014, 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 consolidated balance sheets.

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:

	Three Months Ended March 31,
	2015			2014
Interest Rate Swaps in Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in AOCI on derivatives (effective portion)	$	(1,982,000	)	$	300,000
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)		(105,000	)		-
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)		-			-

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement Of Cash Flows [Abstract]
Capitalized interest, net	$ 10,000	$ 0

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Assets Measures 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, 2015 and December 31, 2014, which we measure on a recurring basis by level within the fair value hierarchy.  

	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)
Interest Rate Swaps at:
March 31, 2015	$	(3,279,000	)	$	-	$	(3,279,000	)	$	-
December 31, 2014	$	(1,402,000	)	$	-	$	(1,402,000	)	$	-

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, 2015 and December 31, 2014:

	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, 2015	$	270,377,000	$	-	$	-	$	270,377,000	$	269,541,000
December 31, 2014	$	357,212,000	$	-	$	-	$	357,212,000	$	356,362,000

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Investments in Real Estate - Summary of Acquired Wholly Owned Industrial Properties (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Buildings sqft
Business Acquisition [Line Items]
Square Feet	428,414
Number of Buildings	8
Purchase Price	$ 52,355,000
8902-8940 Activity Road
Business Acquisition [Line Items]
Submarket	San Diego - Central	[1]
Date of Acquisition	Jan. 21, 2015	[1]
Square Feet	112,501	[1]
Number of Buildings	5	[1]
Purchase Price	18,450,000	[1]
1210 North Red Gum Street
Business Acquisition [Line Items]
Submarket	Orange County - North	[2]
Date of Acquisition	Mar. 09, 2015	[2]
Square Feet	64,570	[2]
Number of Buildings	1	[2]
Purchase Price	7,650,000	[2]
9401 De Soto Avenue
Business Acquisition [Line Items]
Submarket	Los Angeles - San Fernando Valley	[2]
Date of Acquisition	Mar. 18, 2015	[2]
Square Feet	150,263	[2]
Number of Buildings	1	[2]
Purchase Price	14,075,000	[2]
12907 Imperial Highway
Business Acquisition [Line Items]
Submarket	Los Angeles - Mid-counties	[3]
Date of Acquisition	Jan. 21, 2015	[3]
Square Feet	101,080	[3]
Number of Buildings	1	[3]
Purchase Price	$ 12,180,000	[3]

[1] This acquisition was funded with borrowings under our unsecured revolving credit facility.

[2] This acquisition was funded with available cash on hand.

[3] This acquisition was funded as follows: (i) $5.4 million from the assumption of secured debt; (ii) $2.1 million from a deposit paid during the fourth quarter of 2014 and (iii) borrowings under our unsecured revolving credit facility. The assumed debt was recorded at fair value on the acquisition date, resulting in a premium of approximately $0.5 million.

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Notes Payable - Summary of Aggregate Future Minimum Payments of Debt (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total	$ 269,879,000	$ 357,076,000
With Out Extension Option
Debt Instrument [Line Items]
April 1, 2015 - December 31, 2015	10,286,000
2016	43,002,000
2017	48,766,000
2018	5,208,000
2019	160,158,000
Thereafter	2,459,000
Total	$ 269,879,000

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Earnings Per Share - Additional Information (Detail)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Earnings Per Share [Abstract]
Unvested restricted stock	420,280	320,017	131,786

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CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Land	$ 392,594,000	$ 368,033,000
Buildings and improvements	570,688,000	540,837,000
Tenant improvements	22,417,000	21,404,000
Furniture, fixtures, and equipment	188,000	188,000
Total real estate held for investment	985,887,000	930,462,000
Accumulated depreciation	(83,140,000)	(76,884,000)
Investments in real estate, net	902,747,000	853,578,000
Cash and cash equivalents	47,541,000	8,606,000
Note receivable	13,135,000	13,137,000
Rents and other receivables, net	1,892,000	1,812,000
Deferred rent receivable, net	5,520,000	5,165,000
Deferred leasing costs, net	3,744,000	3,608,000
Deferred loan costs, net	1,895,000	2,045,000
Acquired lease intangible assets, net	26,504,000	28,136,000
Acquired indefinite-lived intangible	5,271,000	5,271,000
Other assets	5,534,000	4,699,000
Acquisition related deposits	250,000	2,110,000
Investment in unconsolidated real estate entities	4,013,000	4,018,000
Total Assets	1,018,046,000	932,185,000
Liabilities
Notes payable	269,541,000	356,362,000
Interest rate swap liability	3,279,000	1,402,000
Accounts payable, accrued expenses and other liabilities	11,566,000	10,053,000
Dividends payable	6,639,000	5,244,000
Acquired lease intangible liabilities, net	2,903,000	3,016,000
Tenant security deposits	9,112,000	8,768,000
Prepaid rents	1,144,000	1,463,000
Total Liabilities	304,184,000	386,308,000
Rexford Industrial Realty, Inc. stockholders' equity
Common Stock, $0.01 par value 490,000,000 authorized and 55,329,363 and 43,702,442 outstanding as of March 31, 2015 and December 31, 2014, respectively	549,000	434,000
Additional paid in capital	719,199,000	542,318,000
Cumulative distributions in excess of earnings	(28,235,000)	(21,673,000)
Accumulated other comprehensive loss	(3,147,000)	(1,331,000)
Total stockholders' equity	688,366,000	519,748,000
Noncontrolling interests	25,496,000	26,129,000
Total Equity	713,862,000	545,877,000
Total Liabilities and Equity	$ 1,018,046,000	$ 932,185,000

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Investments in Real Estate - Proforma Financial Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Business Combinations [Abstract]
Revenues	$ 21,586,000	$ 14,133,000
Net operating income	15,311,000	9,532,000
Net income	$ 226,000	$ 930,000

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (USD $)	Total	Common Stock	Additional Paid-in Capital	Cumulative Distributions in Excess of Earnings	Accumulated Other Comprehensive Loss	Total Stockholders' Equity	Noncontrolling Interest
Beginning Balance at Dec. 31, 2014	$ 545,877,000	$ 434,000	$ 542,318,000	$ (21,673,000)	$ (1,331,000)	$ 519,748,000	$ 26,129,000
Beginning Balance, shares at Dec. 31, 2014	43,702,442	43,702,442
Issuance of common stock	184,000,000	115,000	183,885,000			184,000,000
Issuance of common stock, shares		11,500,000
Offering costs	(7,668,000)		(7,668,000)			(7,668,000)
Share-based compensation	367,000		367,000			367,000
Share-based compensation, shares		100,263
Conversion of units to common stock	297,000		297,000			297,000	(297,000)
Conversion of units to common stock, shares	26,658	26,658
Net income	81,000			77,000		77,000	4,000
Other comprehensive loss	(1,877,000)				(1,816,000)	(1,816,000)	(61,000)
Dividends	(6,639,000)			(6,639,000)		(6,639,000)
Distributions	(279,000)						(279,000)
Ending Balance at Mar. 31, 2015	$ 713,862,000	$ 549,000	$ 719,199,000	$ (28,235,000)	$ (3,147,000)	$ 688,366,000	$ 25,496,000
Ending Balance, shares at Mar. 31, 2015	55,329,363	55,329,363

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Fair Value Measurements - Carrying Value and Estimated Fair Value of Notes Payable (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value	$ 270,377,000	$ 357,212,000
Notes payable	269,541,000	356,362,000
Significant Unobservable Inputs (Level 3)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value	$ 270,377,000	$ 357,212,000

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Summary of the Properties Sold

Dispositions

We did not have any dispositions during the three months ended March 31, 2015.  The table below summarizes the properties sold during the three months ended March 31, 2014.

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Gain (Loss) Recorded (1)
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	(137,000	)

(1) The results of operations and the gain or loss on sale of these properties is reported under Discontinued Operations in the consolidated statements of operations.

Results of Operations

Discontinued Operations

Discontinued operations for the three months ended March 31, 2014 includes the results of operations (prior to disposition) and the gain (loss) on sale of real estate of the two properties in the table above.  The following table summarizes the main components of income from discontinued operations for the three months ended March 31, 2014.

	Three Months Ended March 31, 2014
Revenues	$	85,000
Operating expenses		(57,000	)
Depreciation and amortization expense		(7,000	)
Gain on sale of real estate		2,125,000
Income from discontinued operations	$	2,146,000

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Discontinued Operations - Summary of the Properties Sold (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014 sqft
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Rentable square feet	428,414
Gain (Loss) Recorded		$ 2,125,000
Park Center Drive
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Location	Vista, CA
Date of disposition	Jan. 29, 2014
Rentable square feet		124,997
Sales price		10,103,000
Gain (Loss) Recorded		2,262,000	[1]
N. Madera Road
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Location	Simi Valley, CA
Date of disposition	Mar. 13, 2014
Rentable square feet		63,305
Sales price		4,350,000
Gain (Loss) Recorded		$ (137,000)	[1]

[1] The results of operations and the gain or loss on sale of these properties is reported under Discontinued Operations in the consolidated statements of operations.

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Equity

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Equity

14. Equity

Common Stock

On February 3, 2015, we completed a public follow-on offering of 11,500,000 shares of our common stock at a public offering price of $16.00 per share.  The net proceeds of the follow-on offering were approximately $176.3 million, after deducting the underwriting discount and offering costs paid and accrued aggregating approximately $7.7 million.  On February 3, 2015, we contributed the net proceeds of the offering to our Operating Partnership in exchange for 11,500,000 common units of partnership interests in the Operating Partnership (“OP Units”).

Noncontrolling Interests

Noncontrolling interests in our Operating Partnership relate to interests in the partnership that are not owned by us. Noncontrolling interests consisted of 2,296,686 OP Units and represented approximately 4.0% of our Operating Partnership as of March 31, 2015. 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, 2015, 26,658 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $297,000 of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders equity.

2013 Incentive Award Plan

In July 2013, we established the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which we may make grants of stock options, restricted stock, long term incentive plan units in our Operating Partnership and other stock based and cash awards to our non-employee directors, employees and consultants. The maximum number of shares of our common stock that may be issued or transferred pursuant to the Plan is 2,272,689 shares (of which 1,818,389 shares of common stock remain available for issuance as of March 31, 2015).

Shares of our restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent or the administrator of the Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions generally expire upon vesting. Shares of our restricted common stock have full voting rights and rights to dividends.

During the three months ended March 31, 2015 and 2014, we recognized net equity compensation expense of $367,000 and $172,000, respectively, related to the restricted common stock grants ultimately expected to vest. Equity compensation expense is included in general and administrative and property expenses in the accompanying consolidated statements of operations. Certain amounts of equity compensation expense are capitalized for employees who provide leasing and construction services. During the three months ended March 31, 2015 and 2014, we capitalized $18,000 and $29,000 respectively, related to these employees.

The following table sets forth our nonvested restricted stock activity for the three months ended March 31, 2015:

	Number of Nonvested Shares of Restricted Common Stock
Balance at January 1, 2015		320,017
Granted		108,699
Forfeited		(8,436	)
Vested		-
Balance at March 31, 2015		420,280

The following table sets forth the vesting schedule of total nonvested shares of restricted stock outstanding as of March 31, 2015:

	Shares
April 1, 2015 - December 31, 2015		106,754
2016		112,232
2017		140,007
2018		42,266
2019		19,021
		420,280

As of March 31, 2015, there was approximately $4.5 million of total unrecognized compensation expense related to nonvested shares of our restricted common stock expected to vest, of which approximately $0.3 million will be capitalized for employees who provide leasing and construction services. As of March 31, 2015, this total unrecognized compensation expense is expected to be recognized over a weighted average remaining period of 40 months.

Changes in Accumulated Other Comprehensive Loss

The following table summarizes the changes in our accumulated other comprehensive loss balance for the three months ended March 31, 2015, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Loss
Balance at January 1, 2015	$	(1,331,000	)
Other comprehensive loss before reclassifications		(1,982,000	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		105,000
Net current period other comprehensive loss		(1,877,000	)
Less other comprehensive loss attributable to noncontrolling interests		61,000
Other comprehensive loss attributable to common stockholders		(1,816,000	)
Balance at March 31, 2015	$	(3,147,000	)

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Equity (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Schedule of Unvested Restricted Stock Activity

The following table sets forth our nonvested restricted stock activity for the three months ended March 31, 2015:

	Number of Nonvested Shares of Restricted Common Stock
Balance at January 1, 2015		320,017
Granted		108,699
Forfeited		(8,436	)
Vested		-
Balance at March 31, 2015		420,280

Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding

The following table sets forth the vesting schedule of total nonvested shares of restricted stock outstanding as of March 31, 2015:

	Shares
April 1, 2015 - December 31, 2015		106,754
2016		112,232
2017		140,007
2018		42,266
2019		19,021
		420,280

Summary of the Components of Changes in Accumulated Other Comprehensive Loss

The following table summarizes the changes in our accumulated other comprehensive loss balance for the three months ended March 31, 2015, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Loss
Balance at January 1, 2015	$	(1,331,000	)
Other comprehensive loss before reclassifications		(1,982,000	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		105,000
Net current period other comprehensive loss		(1,877,000	)
Less other comprehensive loss attributable to noncontrolling interests		61,000
Other comprehensive loss attributable to common stockholders		(1,816,000	)
Balance at March 31, 2015	$	(3,147,000	)

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Subsequent Events

3 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

On April 1, 2015, we repaid the $10.1 million outstanding balance on our loan secured by the property located at 2980-2990 North San Fernando Road.  We repaid the balance using available cash on hand and did not incur any prepayment penalties for repaying in advance of the maturity date of July 1, 2015.  

In April 2015, the Company entered into separate Equity Distribution Agreements (the “Agreements”) with each of Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC (the “Sales Agents”). Under the terms of the Agreements, the Company may issue and sell from time to time through or to the Sales Agents, as sales agents and/or principals, shares of the Company’s common stock having an aggregate offering amount of up to $125.0 million.

On April 30, 2015, we acquired the property located at 9615 S. Norwalk Boulevard in Santa Fe Springs, California for a contract price of $9.6 million using available cash on hand.  The property consists of a 10 acre paved land storage facility and includes a 26,362 square foot industrial building and a 12,000 square foot office building.

On May 1, 2015, we acquired the property located at 16221 Arthur Street in Cerritos, California for a contract price of $5.8 million using available cash on hand.  The property consists of one single-tenant building totaling 61,372 rentable square feet.

Subsequent to March 31, 2015, 27,614 OP Units were converted into an equivalent number of shares of common stock.

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Equity - Schedule of Nonvested Restricted Stock Activity (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity [Abstract]
Balance at January 1, 2015	320,017	131,786
Granted	108,699
Forfeited	(8,436)
Balance at March 31, 2015	420,280	131,786

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 81,000	$ 1,429,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of unconsolidated real estate entities	(1,000)	(45,000)
Depreciation and amortization	9,884,000	6,130,000
Depreciation and amortization included in discontinued operations		7,000
Amortization of above (below) market lease intangibles, net	39,000	81,000
Accretion of discount on notes receivable	(69,000)	(64,000)
Gain on sale of real estate included in discontinued operations		(2,125,000)
Amortization of loan costs	209,000	129,000
Accretion of premium on notes payable	(92,000)	(11,000)
Equity based compensation expense	348,000	172,000
Change in working capital components:
Rents and other receivables	(80,000)	(325,000)
Deferred rent receivable	(365,000)	(184,000)
Leasing commissions	(492,000)	(336,000)
Other assets	(927,000)	(1,985,000)
Accounts payable, accrued expenses and other liabilities	1,508,000	835,000
Tenant security deposits	137,000	462,000
Prepaid rent	(405,000)	(1,014,000)
Net cash provided by operating activities	9,775,000	3,156,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of investments in real estate	(46,705,000)	(32,339,000)
Capital expenditures	(4,487,000)	(1,594,000)
Acquisition related deposits	1,860,000	(40,000)
Contributions to unconsolidated real estate entities		(105,000)
Distributions from unconsolidated real estate entities	6,000	14,000
Change in restricted cash		(27,000)
Principal repayments of notes receivable	71,000	68,000
Disposition of investment in real estate		13,790,000
Net cash used in investing activities	(49,255,000)	(20,233,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock	184,000,000
Offering costs	(7,400,000)	(6,000)
Proceeds from notes payable	23,500,000	24,500,000
Repayment of notes payable	(116,098,000)	(4,062,000)
Deferred loan costs	(64,000)	(8,000)
Dividends paid to common stockholders	(5,244,000)	(5,368,000)
Distributions paid to common unitholders	(279,000)	(632,000)
Net cash provided by financing activities	78,415,000	14,424,000
Increase (decrease) in cash and equivalents	38,935,000	(2,653,000)
Cash and cash equivalents, beginning of period	8,606,000	8,997,000
Cash and cash equivalents, end of period	47,541,000	6,344,000
Supplemental disclosure of cash flow information:
Cash paid for interest (net of capitalized interest of $10,000 and $0 for the three months ended March 31, 2015 and 2014, respectively)	2,622,000	1,178,000
Supplemental disclosure of noncash investing and financing transactions:
Assumption of loan in connection with acquisition of real estate	5,401,000
Capital expenditure accruals	1,028,000
Accrual of dividends	6,639,000	5,244,000
Accrual of offering costs	$ 268,000

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CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares outstanding	55,329,363	43,702,442

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

9. 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, 2015, 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, 2015 and December 31, 2014, which we measure on a recurring basis by level within the fair value hierarchy.  

	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)
Interest Rate Swaps at:
March 31, 2015	$	(3,279,000	)	$	-	$	(3,279,000	)	$	-
December 31, 2014	$	(1,402,000	)	$	-	$	(1,402,000	)	$	-

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 currently available market rates, adjusted with a credit spread, and assuming the loans are outstanding through contractual maturity date.

The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2015 and December 31, 2014:

	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, 2015	$	270,377,000	$	-	$	-	$	270,377,000	$	269,541,000
December 31, 2014	$	357,212,000	$	-	$	-	$	357,212,000	$	356,362,000

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 06, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	REXR
Entity Registrant Name	Rexford Industrial Realty, Inc.
Entity Central Index Key	0001571283
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,352,752

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Related Party Transactions (Chief Executive Officer)

3 Months Ended

Mar. 31, 2015

Chief Executive Officer

Related Party Transaction [Line Items]

Related Party Transactions

10. Related Party Transactions

Howard Schwimmer

We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management and development 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 $55,000 and $53,000 for the three months ended March 31, 2015 and 2014, respectively, in management, leasing and development services revenue.  

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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
RENTAL REVENUES
Rental revenues	$ 18,557,000	$ 11,628,000
Tenant reimbursements	2,184,000	1,511,000
Management, leasing and development services	132,000	234,000
Other income	190,000	42,000
TOTAL RENTAL REVENUES	21,063,000	13,415,000
Interest income	277,000	276,000
TOTAL REVENUES	21,340,000	13,691,000
OPERATING EXPENSES
Property expenses	5,771,000	4,134,000
General and administrative	3,546,000	2,605,000
Depreciation and amortization	9,884,000	6,130,000
TOTAL OPERATING EXPENSES	19,201,000	12,869,000
OTHER EXPENSE
Acquisition expenses	233,000	333,000
Interest expense	1,826,000	1,251,000
TOTAL OTHER EXPENSE	2,059,000	1,584,000
TOTAL EXPENSES	21,260,000	14,453,000
Equity in income from unconsolidated real estate entities	1,000	45,000
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	81,000	(717,000)
DISCONTINUED OPERATIONS
Income from discontinued operations before gain on sale of real estate		21,000
Gain on sale of real estate		2,125,000
INCOME FROM DISCONTINUED OPERATIONS		2,146,000
NET INCOME	81,000	1,429,000
NET INCOME ATTRIBUTABLE TO:
Rexford Industrial Realty, Inc. common stockholders	27,000	1,261,000
Noncontrolling interests	4,000	152,000
Participating securities	50,000	16,000
NET INCOME	$ 81,000	$ 1,429,000
Income (loss) from continuing operations available to common stockholders per share - basic and diluted		$ (0.03)
Net income available to common stockholders per share - basic and diluted		$ 0.05
Weighted average shares of common stock outstanding - basic and diluted	50,683,528	25,419,418
Dividends declared per common share	$ 0.12	$ 0.12

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Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

4. Intangible Assets

The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows:

	March 31, 2015			December 31, 2014
Acquired Lease Intangible Assets:
In-place lease intangibles	$	39,385,000		$	37,467,000
Accumulated amortization		(16,193,000	)		(12,975,000	)
In-place lease intangibles, net		23,192,000			24,492,000
Above-market tenant leases		5,002,000			4,971,000
Accumulated amortization		(1,690,000	)		(1,327,000	)
Above-market tenant leases, net		3,312,000			3,644,000
Acquired lease intangible assets, net	$	26,504,000		$	28,136,000
Acquired Lease Intangible Liabilities:
Below-market tenant leases		(3,726,000	)		(3,514,000	)
Accumulated accretion		1,060,000			743,000
Below-market tenant leases, net		(2,666,000	)		(2,771,000	)
Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		53,000			45,000
Above-market ground lease, net		(237,000	)		(245,000	)
Acquired lease intangible liabilities, net	$	(2,903,000	)	$	(3,016,000	)

The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the reported periods noted below:

	Three Months Ended March 31,
	2015			2014
In-place lease intangibles (1)	$	3,218,000		$	2,086,000
Net above (below) market tenant leases (2)	$	47,000		$	88,000
Above-market ground lease (3)	$	(8,000	)	$	(8,000	)

(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 above/(below)-market tenant leases is recorded as a decrease to rental revenues in the consolidated statements of operations for the periods presented.

(3) The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated statements of operations for the periods presented.

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Investments in Real Estate

3 Months Ended

Mar. 31, 2015

Investments All Other Investments [Abstract]

Investments in Real Estate

3. Investments in Real Estate

The following table sets forth the wholly-owned industrial properties we acquired during the three months ended March 31, 2015:

Property	Submarket	Date of Acquisition	Square Feet		Number of Buildings	Purchase Price
8902-8940 Activity Road(1)	San Diego - Central	1/21/2015		112,501	5	$	18,450,000
12907 Imperial Highway(2)	Los Angeles - Mid-counties	1/21/2015		101,080	1		12,180,000
1210 North Red Gum Street(3)	Orange County - North	3/9/2015		64,570	1		7,650,000
9401 De Soto Avenue(3)	Los Angeles - San Fernando Valley	3/18/2015		150,263	1		14,075,000
Total 2015 Wholly-Owned Property Acquisitions				428,414	8	$	52,355,000

(1) This acquisition was funded with borrowings under our unsecured revolving credit facility.

(2) This acquisition was funded as follows: (i) $5.4 million from the assumption of secured debt; (ii) $2.1 million from a deposit paid during the fourth quarter of 2014 and (iii) borrowings under our unsecured revolving credit facility. The assumed debt was recorded at fair value on the acquisition date, resulting in a premium of approximately $0.5 million.    

(3) This acquisition was funded with available cash on hand.

     The following table summarizes the preliminary allocation of the purchase price paid for the acquired assets and liabilities assumed of the properties in the table above as of the date of acquisition:

	Total 2015 Acquisitions
Assets:
Land(1)	$	24,554,000
Buildings and improvements		25,945,000
Tenant improvements		620,000
Acquired lease intangible assets(2)		1,950,000
Other acquired assets(4)		82,000
Total assets acquired		53,151,000
Liabilities:
Acquired lease intangible liabilities(3)		212,000
Notes payable		5,874,000
Other assumed liabilities(4)		360,000
Total liabilities assumed		6,446,000
Net assets acquired	$	46,705,000

(1) The allocation to land includes $29,000 of capitalized acquisition costs related to the purchase of 9401 De Soto Avenue, which was accounted for as an asset acquisition.

(2) Represents $1,918,000 and $32,000 of in-place leases and above-market leases with a weighted average amortization period of 3.2 years and 3.0 years, respectively.

(3) Represents below-market leases with a weighted average amortization period of 4.1 years.

(4) Includes other working capital assets acquired and liabilities assumed, respectively, at the time of acquisition.

The preliminary allocation of the purchase price is based upon a preliminary valuation and our estimates and assumptions are subject to change within the purchase price allocation period (generally one year from the acquisition date).

The following table sets forth the unaudited results of operations for the three months ended March 31, 2015, for each of the properties acquired during the three months ended March 31, 2015, included in the consolidated statement of operations from the date of acquisition:

	Three Months Ended March 31, 2015
Revenues	$	469,000
Net Income	$	6,000

The following table sets forth unaudited pro-forma financial information for the three months ended March 31, 2015 and 2014, as if the closing of our acquisitions during the three months ended March 31, 2015, had occurred on January 1, 2014. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions, and increased interest expense for borrowings associated with these acquisitions.  These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2014 and may not be indicative of future operating results.

	Three Months Ended March 31,
	2015		2014
Revenues	$	21,586,000	$	14,133,000
Net operating income	$	15,311,000	$	9,532,000
Net income	$	226,000	$	930,000

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Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

15. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2015			2014
Numerator:
Net income (loss) from continuing operations	$	81,000		$	(717,000	)
Net (income) loss from continuing operations attributable to noncontrolling interests		(4,000	)		75,000
Income from continuing operations attributable to participating securities		(50,000	)		(16,000	)
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc.	$	27,000		$	(658,000	)
Income from discontinued operations		-			2,146,000
Income from discontinued operations attributable to noncontrolling interests		-			(227,000	)
Income from discontinued operations attributable to participating securities		-			-
Income from discontinued operations attributable to Rexford Industrial Realty, Inc.	$	-		$	1,919,000
Net income	$	81,000		$	1,429,000
Net income attributable to noncontrolling interests		(4,000	)		(152,000	)
Net income attributable to participating securities		(50,000	)		(16,000	)
Net income attributable to Rexford Industrial Realty, Inc.	$	27,000		$	1,261,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted		50,683,528			25,419,418
Earnings per share - Basic and Diluted:
Net income (loss) from continuing operations attributable to common stockholders	$	-		$	(0.03	)
Net income from discontinued operations attributable to common stockholders	$	-		$	0.08
Net income attributable to common stockholders	$	-		$	0.05

Participating securities include 420,280 and 131,786 shares of unvested restricted stock outstanding at March 31, 2015 and 2014, respectively, which participate in non-forfeitable dividends of the Company. Participating securities have been allocated earnings, in proportion to total weighted average shares outstanding, based upon the greater of net income or common dividends declared.

The effect of including unvested restricted common stock using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as its inclusion would have been antidilutive.  As such, the number of weighted average shares of common stock outstanding, both basic and diluted, are the same for the three months ended March 31, 2015 and 2014.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Legal

From time to time, we are subject to various legal proceedings that arise in the ordinary course of business.

On October 3, 2013, two pre-IPO investors filed a putative class action purportedly brought on behalf of the investors in RIF III in the Los Angeles County Superior Court. On February 14, 2014, a First Amended Complaint was filed adding an additional individual pre-IPO investor and putative class claims on behalf of investors in RIF IV.  This complaint also alleged that the communication of the proposed accommodation (in which Messrs. Schwimmer, Frankel and Ziman, together with certain other pre-IPO owners of the pre-IPO management companies agreed to return up to $32.1 million that they received in connection with our IPO and formation transactions) was materially misleading by not including disclosures regarding the lawsuit and claims asserted by plaintiffs.  On July 15, 2014, a Second Amended Complaint was filed withdrawing the class action allegations and the allegations concerning communication of the accommodation, and adding four additional plaintiff investors. During the third quarter of 2014, the Company entered into settlement agreements with three of these four additional plaintiffs.  The aggregate amounts paid by the Company in these settlements were not material. Plaintiffs asserted claims against the Company, RIF III, RIF IV, RILLC and Messrs. Schwimmer, Frankel and Ziman for breach of fiduciary duty, violation of certain California securities laws, negligent misrepresentation, and fraud. Plaintiffs alleged, among other things, that the terms of the Company’s formation transactions were unfair to investors in RIF III and RIF IV, that the consideration received by investors in RIF III and RIF IV in the formation transactions was inadequate, that the pre-IPO management companies were allocated unfair value in the formation transactions and that the disclosure documents related to the formation transactions were materially misleading.  Plaintiffs also requested to inspect the books and records of RIF III and RIF IV, which entities no longer exist, and further sought declaratory relief, unspecified recessionary damages, disgorgement, compensatory, punitive and exemplary damages, an accounting for unjust enrichment, and an award of costs including pre-judgment interest, attorneys’ and experts’ fees, and other unspecified relief. Defendants answered the Second Amended Complaint denying all allegations and asserting affirmative defenses.  During the second quarter of 2015, the Company entered into a settlement agreement with the remaining plaintiffs.  The aggregate amount paid by the Company in this settlement was not material.

Environmental

We generally will 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 estimable, we record a liability.

On February 25, 2014, we acquired the property located at West 228th Street.  Before purchasing the property, during the due diligence phase, we engaged with a third party environmental consultant to perform various environmental site assessments to determine the presence of any environmental contaminants that might warrant remediation efforts. Based on their investigation, they determined that hazardous substances existed at the property and that additional assessment and remediation work would likely be required to satisfy regulatory requirements.  The total remediation costs were estimated to be $1.3 million.

To address the estimated costs associated with the environmental issues at the West 228^th Street property, we entered into an Environmental Holdback Escrow Agreement (the “Holdback Agreement”) with the former owner, whereby $1.3 million of the purchase price, which would have otherwise been paid to the former owner, was to be placed into an escrow account to be used to pay remediation costs.  In addition, we also funded $100,000 into the escrow account.  According to the Holdback Agreement, the seller has no liability or responsibility to pay for remediation costs in excess of $1.3 million.

As of March 31, 2015 and December 31, 2014, we have a $1.2 million contingent liability recorded in our consolidated balance sheets included in the line item “Accounts payable accrued expenses and other liabilities”, reflecting the estimated remaining cost to remediate environmental liabilities that existed prior to the acquisition date.  As of March 31, 2015 and December 31, 2014, we also have a $1.2 million corresponding indemnification asset recorded in our consolidated balance sheets included in the line item “Other assets”, reflecting the estimated costs we expect the former owner to cover pursuant to the Holdback Agreement.  

We expect that the resolution of the environmental matters relating to the above will not have a material impact on our consolidated financial condition, results of operations or cash flows.  However, we cannot assure you 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.

Rent Expense

As of March 31, 2015, we lease a parcel of land that is currently being sub-leased to a tenant for a parking lot.  The ground lease is scheduled to expire on June 1, 2062.  

The future minimum commitment under our ground lease and corporate office lease as of March 31, 2015 is as follows:

	Office Lease		Ground Rent
April 1, 2015 - December 31, 2015	$	337,000	$	108,000
2016		520,000		144,000
2017		542,000		144,000
2018		559,000		144,000
2019		337,000		144,000
Thereafter		-		6,108,000
Total	$	2,295,000	$	6,792,000

Tenant and Construction Related

As of March 31, 2015, we had commitments of approximately $4.1 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, 2015, 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.

As of March 31, 2015, 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.

As of March 31, 2015, our 10 largest tenants represented approximately 14% of our annualized base rent, which is based on the monthly contracted base rent from leases in effect as of March 31, 2015, multiplied by 12, excluding billboard and antenna revenue and rent abatements.   During the three months ended March 31, 2015, no single tenant accounted for more than 10% of our rental revenues.

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Operating Leases

3 Months Ended

Mar. 31, 2015

Leases Operating [Abstract]

Operating Leases

7. Operating Leases

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses. Operating expense reimbursements are reflected in the consolidated statements of operations as tenant reimbursements.

Future minimum base rent under operating leases as of March 31, 2015 is summarized as follows:

Twelve months ending March 31:
2016	$	69,620,000
2017		50,777,000
2018		33,894,000
2019		23,121,000
2020		16,988,000
Thereafter		21,799,000
Total	$	216,199,000

The future minimum base rent in the table above excludes tenant reimbursements, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles.

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Related Party Transactions - Additional Information (Detail) (Chief Executive Officer, USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Chief Executive Officer
Related Party Transaction [Line Items]
Revenue from management and leasing services	$ 55,000	$ 53,000

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Note Receivable

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Note Receivable

5. Note Receivable

As of March 31, 2015 and December 31, 2014, we have one mortgage note receivable, which is secured by an industrial property located at 32401-32803 Calle Perfecto in San Juan Capistrano (the “Calle Perfecto Note”).  The Calle Perfecto Note is a 30-year amortizing loan which bears interest at a fixed rate of 6.001% and matures on May 1, 2017.  

The following table summarizes the balance of our notes receivable:

	March 31, 2015			December 31, 2014
Face Amount	$	13,825,000		$	13,896,000
Unrecognized Accretable Yield		(690,000	)		(759,000	)
Note Receivable	$	13,135,000		$	13,137,000

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Notes Payable

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Notes Payable

6. Notes Payable

The following table summarizes the balance of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015			December 31, 2014
Principal amount	$	269,879,000		$	357,076,000
Less: unamortized discount and deferred loan costs		(338,000	)		(714,000	)
Carrying value	$	269,541,000		$	356,362,000

The following table summarizes the components and significant terms of our indebtedness as of March 31, 2015 and December 31, 2014:

	March 31, 2015					December 31, 2014
	Principal Amount		Unamortized Discount and Deferred Loan Costs			Principal Amount		Unamortized Discount and Deferred Loan Costs			Contractual Maturity Date		Contractual Interest Rate			Effective Interest Rate (1)
Fixed Rate Debt
The Park	$	3,141,000	$	(159,000	)	$	3,173,000	$	(161,000	)	3/1/2031			5.125%	(2)		5.36	%
2980 San Fernando		10,105,000		70,000			10,153,000		139,000		7/1/2015			5.088%	(3)		2.33	%
12907 Imperial Highway		5,383,000		390,000			-		-		4/1/2018			5.950%	(4)		3.85	%
Variable Rate Debt									-
RIF V - Glendale Commerce Center, LLC		42,750,000		-			42,750,000		-		5/1/2016	(5)	LIBOR + 2.00%				2.18	%
Term Loan (6)		60,000,000		(342,000	)		60,000,000		(362,000	)	8/1/2019	(7)	LIBOR + 1.90%				2.21	%
Term Loan (8)		48,500,000		(297,000	)		48,500,000		(330,000	)	6/24/2017	(7)	LIBOR + 1.55%				2.00	%
Unsecured Term Loan Facility		100,000,000		-			100,000,000		-		6/11/2019		LIBOR + 1.35%				1.53	%
Unsecured Credit Facility				-					-
Unsecured Credit Facility		-		-			92,500,000		-		6/11/2018	(7)	LIBOR + 1.40%		(9)		0.00	%
Total	$	269,879,000	$	(338,000	)	$	357,076,000	$	(714,000	)

(1)     Reflects the effective interest rate at March 31, 2015 and includes the effect of amortization of discounts/premiums and deferred loan costs.

(2)     Monthly payments of interest and principal based on 20-year amortization table.

(3)     Monthly payments of interest and principal based on 30-year amortization table.

(4)     Monthly payments of interest and principal based on 30-year amortization table, with a balloon payment at maturity.

(5)     Two additional one year extensions available at the borrower’s option.

(6)  Loan is secured by six properties. As of March 31, 2015, $30 million of this $60 million variable-rate term loan has been effectively fixed through the use of an interest rate swap. See Note 8.

(7)     One additional one year extension available at the borrower’s option.

(8)     Loan is secured by eight properties.

(9)     The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the unsecured revolving credit facility if the balance is under $100 million or over $100 million, respectively.

On January 21, 2015, in connection with the acquisition of the property located at 12907 Imperial Highway, we assumed a mortgage loan that is secured by the property.  The assumed mortgage loan had a principal balance of $5.4 million at the acquisition date and was recorded at fair value at the date of acquisition resulting in an initial debt premium of $473,000.  The loan, which was put in place in 2008 by the seller, bears interest at a fixed rate of 5.95% with amortization over 30 years, and has a maturity date of April 1, 2018.

The following table summarizes the contractual debt maturities and scheduled amortization payments, excluding debt discounts/premiums and deferred loan costs, as of March 31, 2015 and does not consider extension options available to us as noted above:

April 1, 2015 - December 31, 2015	$	10,286,000
2016		43,002,000
2017		48,766,000
2018		5,208,000
2019		160,158,000
Thereafter		2,459,000
Total	$	269,879,000

Unsecured Credit Facility

We have a senior unsecured revolving credit facility with borrowing capacity of $200.0 million (the “Revolver”) and a senior unsecured term loan facility (the “Term Loan Facility”) with borrowing capacity of $100.0 million (together the “Credit Facility”).  The Revolver is scheduled to mature on June 11, 2018 with one 12-month extension option available, subject to certain conditions, and the Term Loan Facility is scheduled to mature on June 11, 2019.  The aggregate principal amount of the Credit Facility may be increased to a total of up to $600.0 million, which may be comprised of additional revolving commitments under the Revolver or an increase to the Term Loan Facility, or any combination of the foregoing, subject to the satisfaction of specified conditions and the identification of lenders willing to make available such additional amounts.

Interest on the Credit Facility is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greater of (a) the federal funds rate plus 0.50%, (b) the administrative agent’s prime rate or (c) the thirty-day LIBOR plus 1.00%, plus the applicable base rate margin. Until we attain an investment grade rating by two or more of Standard & Poor’s, Moody’s Investor Services and Fitch Ratings, the applicable LIBOR margin will range from1.30% to 1.90% for the Revolver and 1.25% to 1.85% for the Term Loan Facility, depending on the our Leverage Ratio (as defined in the credit agreement). In February 2015, the Revolver and the Term Loan Facility were assigned an investment grade rating of BBB- by Fitch Ratings. Additionally, there is a quarterly facility fee that is paid on the undrawn portion of the Revolver in an amount equal to 0.20% or 0.30% depending on the undrawn amount of the Revolver.

The Credit Facility is guaranteed by the Company and by substantially all of the current and future subsidiaries of the Operating Partnership that own an unencumbered property. The Credit Facility is not secured by the Company’s properties or by equity interests in the subsidiaries that hold such properties.

The Revolver and the Term Loan Facility may be voluntarily prepaid in whole or in part at any time without premium or penalty.  Amounts borrowed under the Term Loan Facility and repaid or prepaid may not be re-borrowed.

The Credit Facility 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 Facility 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 Facility, 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.  We believe we are currently in compliance with all of the financial covenants required by our loan agreements.

On March 31, 2015, we did not have any outstanding borrowings under our Revolver, leaving $200.0 million available for additional borrowings.

Debt Covenants

The Credit Facility includes a series of financial and other covenants that we must comply with in order to borrow under the Credit Facility.  These include 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%;

· Maintaining a ratio of secured debt to total asset value of not more than 45%;

· Maintaining a ratio of total recourse debt to total asset value of not more than 15%;

· Maintaining a minimum tangible net worth of at least the sum of (i) $283,622,250, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after March 31, 2014;

· Maintaining a ratio of adjusted EBITDA to fixed charges of at least 1.50 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 to unsecured interest expense of at least 1.75 to 1.0. 

Additionally, the Credit Facility provides 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.

In addition to our Credit Facility, certain of our other loan agreements contain financial covenants to be tested quarterly.  The Glendale Commerce Center loan and our $60.0 million term loan both require a minimum Debt Service Coverage Ratio (as defined in their respective loan agreements) of at least 1.10 to 1.00.  

We believe we are in compliance with all of the financial covenants required by our loan agreements as of March 31, 2015.

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Interest Rate Contracts

3 Months Ended

Mar. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Interest Rate Contracts

8. Interest Rate Contracts

Risk Management Objective of Using Derivatives

We are exposed to certain risk 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 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 amount. We do not use derivatives for trading or speculative purposes.  

The effective portion of the change in fair value of derivatives designated and qualifying as cash flow hedges is initially recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  The ineffective portion of the change in fair value of the derivatives is immediately recognized in earnings.  

On February 4, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our existing $60.0 million variable-rate term loan.  Each of the two swaps has a notional value of $30.0 million. We are required to make certain monthly fixed rate payments calculated on notional amounts of $30.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount.  The first forward swap will effectively fix the annual interest rate payable on $30.0 million of debt at 3.726% for the period from January 15, 2015 to February 15, 2019. The second forward swap will effectively fix the annual interest rate payable on the other $30.0 million of debt at 3.91% for the period from July 15, 2015 to February 15, 2019.

On August 19, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our $100.0 million Term Loan Facility.  Each of the two swaps has a notional value of $50.0 million.  The first swap has an effective date of August 14, 2015 and a maturity date of December 14, 2018.  The second swap has an effective date of February 16, 2016 and a maturity date of December 14, 2018.  We are required to make certain monthly fixed rate payments calculated on notional amounts of $50.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount.  The interest rate swaps will effectively fix the annual interest rate payable on our Term Loan Facility at 1.79% for the first swap and 2.005% for the second swap, plus an applicable margin under the terms of the Credit Facility.  

The following table sets forth a summary of our interest rate swaps at March 31, 2015 and December 31, 2014:

						Fair Value(1)				Notional Amount in Effect
Derivative Instrument	Effective Date	Maturity Date	Interest Strike Rate			March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
Liabilities:
Interest Rate Swap	1/15/2015	2/15/2019		1.826	%	$	749,000	$	457,000	$	30,000,000	$	-
Interest Rate Swap	7/15/2015	2/15/2019		2.010	%	$	792,000	$	408,000	$	-	$	-
Interest Rate Swap	8/14/2015	12/14/2018		1.790	%	$	900,000	$	277,000	$	-	$	-
Interest Rate Swap	2/16/2016	12/14/2018		2.005	%	$	838,000	$	260,000	$	-	$	-

(1) We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities.  As of March 31, 2015 and December 31, 2014, 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 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:

	Three Months Ended March 31,
	2015			2014
Interest Rate Swaps in Cash Flow Hedging Relationships:
Amount of gain (loss) recognized in AOCI on derivatives (effective portion)	$	(1,982,000	)	$	300,000
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)		(105,000	)		-
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)		-			-

During the next twelve months, we estimate that an additional $1,307,000 will be reclassified from AOCI as an increase to interest expense.

Credit-risk-related Contingent Features

Certain of our agreements with our derivative counterparties that 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.

As of March 31, 2015, the fair value of interest rate swaps in a net liability position, which excludes any adjustment for nonperformance risk related to these agreements, was $3,368,000.  As of March 31, 2015, we have not posted any collateral related to these agreements.

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Investment in Unconsolidated Real Estate - Combined Financial Information of Predecessor's Equity Method Investment Properties (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014	Dec. 31, 2014
Schedule Of Investments [Abstract]
Assets	$ 23,664,000			$ 23,542,000
Liabilities	(1,355,000)			(1,274,000)
Partners'/members' equity	22,309,000			22,268,000
Company's share of equity	3,346,000			3,340,000
Basis adjustment	667,000	[1]		678,000	[1]
Carrying value of the Company's investment in unconsolidated real estate	4,013,000			4,018,000
Revenues	663,000		1,812,000
Expenses	(622,000)		(1,605,000)
Net income	$ 41,000		$ 207,000

[1] This amount represents the difference between our historical cost basis and the basis reflected at the joint venture level, resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013.

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Discontinued Operations - Results of Operations (Detail) (USD $)	3 Months Ended
	Mar. 31, 2014
Discontinued Operations And Disposal Groups [Abstract]
Revenues	$ 85,000
Operating expenses	(57,000)
Depreciation and amortization expense	(7,000)
Gain on sale of real estate	2,125,000
INCOME FROM DISCONTINUED OPERATIONS	$ 2,146,000

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Investment in Unconsolidated Real Estate - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Property	Mar. 31, 2014
Equity Method Investments And Joint Ventures [Abstract]
Number of real estate properties	102
Management, leasing and development services	$ 132,000	$ 234,000
Mission Oaks Boulevard
Equity Method Investments And Joint Ventures [Abstract]
Ownership Interest	15.00%
Number of real estate properties	1
Mission Oaks Joint Venture
Equity Method Investments And Joint Ventures [Abstract]
Management, leasing and development services	$ 44,000	$ 139,000

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Investment in Unconsolidated Real Estate (Tables)

3 Months Ended

Mar. 31, 2015

Schedule Of Investments [Abstract]

Summarized Information of Our Equity Method Investment Properties

The following tables present combined summarized financial information of our unconsolidated joint venture properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share, unless otherwise noted:

	Rexford Industrial Realty, Inc.
	March 31, 2015			December 31, 2014
Assets	$	23,664,000		$	23,542,000
Liabilities		(1,355,000	)		(1,274,000	)
Partners'/members' equity	$	22,309,000		$	22,268,000
Company's share of equity	$	3,346,000		$	3,340,000
Basis adjustment(1)		667,000			678,000
Carrying value of the Company's investment in unconsolidated real estate	$	4,013,000		$	4,018,000

(1) This amount represents the difference between our historical cost basis and the basis reflected at the joint venture level, resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013.

	Three Months Ended March 31,
	2015			2014
Revenues	$	663,000		$	1,812,000
Expenses		(622,000	)		(1,605,000	)
Net income	$	41,000		$	207,000

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Notes Payable - Summary of Components and Significant Terms of Our Indebtedness (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Property	Dec. 31, 2014
Debt Instrument [Line Items]
Notes payable	$ 269,541,000	$ 356,362,000
Variable Rate Debt | Term Loan One
Debt Instrument [Line Items]
Number of properties securing loan	6
Notes payable	60,000,000
Variable Rate Debt | Term Loan two
Debt Instrument [Line Items]
Number of properties securing loan	8
Unsecured Credit Facility
Debt Instrument [Line Items]
Number of extensions	1
Extension period	1 year
The Park | Fixed Rate Debt
Debt Instrument [Line Items]
Amortization period	20 years
2980 San Fernando | Fixed Rate Debt
Debt Instrument [Line Items]
Amortization period	30 years
Imperial Highway
Debt Instrument [Line Items]
Amortization period	30 years
RIF V - Glendale Commerce Center, LLC | Variable Rate Debt
Debt Instrument [Line Items]
Number of extensions	2
Extension period	1 year
Maximum
Debt Instrument [Line Items]
Additional interest	0.30%
Maximum | Unsecured Credit Facility
Debt Instrument [Line Items]
Line of credit facility, amount outstanding	100,000,000
Minimum
Debt Instrument [Line Items]
Additional interest	0.20%
Minimum | Unsecured Credit Facility
Debt Instrument [Line Items]
Additional interest	0.20%
Unsecured Credit Facility Under Hundred Million | Maximum | Unsecured Credit Facility
Debt Instrument [Line Items]
Additional interest	0.30%
Unsecured Credit Facility Under Hundred Million | Minimum | Unsecured Credit Facility
Debt Instrument [Line Items]
Line of credit facility, amount outstanding	100,000,000
Interest Rate Swap One
Debt Instrument [Line Items]
Interest rate swap agreement, notional amount	$ 30,000,000

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Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

13. Discontinued Operations

Dispositions

We did not have any dispositions during the three months ended March 31, 2015.  The table below summarizes the properties sold during the three months ended March 31, 2014.

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Gain (Loss) Recorded (1)
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	(137,000	)

(1) The results of operations and the gain or loss on sale of these properties is reported under Discontinued Operations in the consolidated statements of operations.

Discontinued Operations

Discontinued operations for the three months ended March 31, 2014 includes the results of operations (prior to disposition) and the gain (loss) on sale of real estate of the two properties in the table above.  The following table summarizes the main components of income from discontinued operations for the three months ended March 31, 2014.

	Three Months Ended March 31, 2014
Revenues	$	85,000
Operating expenses		(57,000	)
Depreciation and amortization expense		(7,000	)
Gain on sale of real estate		2,125,000
Income from discontinued operations	$	2,146,000

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Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2015

Investments All Other Investments [Abstract]

Summary of Acquired Wholly Owned Property Acquisitions

The following table sets forth the wholly-owned industrial properties we acquired during the three months ended March 31, 2015:

Property	Submarket	Date of Acquisition	Square Feet		Number of Buildings	Purchase Price
8902-8940 Activity Road(1)	San Diego - Central	1/21/2015		112,501	5	$	18,450,000
12907 Imperial Highway(2)	Los Angeles - Mid-counties	1/21/2015		101,080	1		12,180,000
1210 North Red Gum Street(3)	Orange County - North	3/9/2015		64,570	1		7,650,000
9401 De Soto Avenue(3)	Los Angeles - San Fernando Valley	3/18/2015		150,263	1		14,075,000
Total 2015 Wholly-Owned Property Acquisitions				428,414	8	$	52,355,000

(1) This acquisition was funded with borrowings under our unsecured revolving credit facility.

(2) This acquisition was funded as follows: (i) $5.4 million from the assumption of secured debt; (ii) $2.1 million from a deposit paid during the fourth quarter of 2014 and (iii) borrowings under our unsecured revolving credit facility. The assumed debt was recorded at fair value on the acquisition date, resulting in a premium of approximately $0.5 million.    

(3) This acquisition was funded with available cash on hand.

Preliminary Allocation of Purchase Price

The following table summarizes the preliminary allocation of the purchase price paid for the acquired assets and liabilities assumed of the properties in the table above as of the date of acquisition:

	Total 2015 Acquisitions
Assets:
Land(1)	$	24,554,000
Buildings and improvements		25,945,000
Tenant improvements		620,000
Acquired lease intangible assets(2)		1,950,000
Other acquired assets(4)		82,000
Total assets acquired		53,151,000
Liabilities:
Acquired lease intangible liabilities(3)		212,000
Notes payable		5,874,000
Other assumed liabilities(4)		360,000
Total liabilities assumed		6,446,000
Net assets acquired	$	46,705,000

Proforma Financial Information

The following table sets forth the unaudited results of operations for the three months ended March 31, 2015, for each of the properties acquired during the three months ended March 31, 2015, included in the consolidated statement of operations from the date of acquisition:

	Three Months Ended March 31, 2015
Revenues	$	469,000
Net Income	$	6,000

The following table sets forth unaudited pro-forma financial information for the three months ended March 31, 2015 and 2014, as if the closing of our acquisitions during the three months ended March 31, 2015, had occurred on January 1, 2014. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions, and increased interest expense for borrowings associated with these acquisitions.  These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2014 and may not be indicative of future operating results.

	Three Months Ended March 31,
	2015		2014
Revenues	$	21,586,000	$	14,133,000
Net operating income	$	15,311,000	$	9,532,000
Net income	$	226,000	$	930,000

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Note Receivable - Summary of Notes Receivable (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Notes Receivables
Face Amount	$ 13,825,000	$ 13,896,000
Unrecognized Accretable Yield	(690,000)	(759,000)
Note receivable	$ 13,135,000	$ 13,137,000

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Investments in Real Estate - Summary of Acquired Wholly Owned Industrial Properties (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Business Acquisition [Line Items]
Assumption of loan in connection with acquisition of real estate	$ 5,401,000
Business acquisition
Business Acquisition [Line Items]
Assumption of loan in connection with acquisition of real estate	5,400,000
Deposits paid	2,100,000
Premium on fair value of debt	$ 500,000

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 81,000	$ 1,429,000
Other comprehensive income (loss): cash flow hedge adjustment	(1,877,000)	300,000
Comprehensive income (loss)	(1,796,000)	1,729,000
Less: comprehensive (income) loss attributable to noncontrolling interests	57,000	(183,000)
Comprehensive income (loss) attributable to common stockholders	$ (1,739,000)	$ 1,546,000

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

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.

Discontinued Operations

On April 14, 2014, the FASB issued Accounting Standards Update 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”).  Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 further expands the disclosure requirements for disposals that meet the definition of a discontinued operation, and requires entities to disclose information about disposals of individually significant components.  We elected to adopt ASU 2014-08 early, beginning in the fiscal quarter ended September 30, 2014.  The adoption of ASU 2014-08 has and will likely result in fewer property sales being classified as discontinued operations.

During the three months ended March 31, 2014, we sold two of our operating properties.  As these properties were sold and classified as held for sale prior to the adoption of ASU 2014-08, the revenues and expenses of these properties are reported as discontinued operations in the consolidated statements of operations for all periods presented through the date of the disposition.  Furthermore, the gain (loss) on sale of these properties is reported as discontinued operations in the consolidated statements of operations in the period the properties are sold. See Note 13.

Investment in Real Estate

Acquisitions

When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities.  The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year.

We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use, such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information.  

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 costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred.

The difference between the fair value and the face value of debt assumed 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 is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date.

For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs.  We capitalized $36,000 and $42,000 in acquisition costs during the three months ended March 31, 2015 and 2014, respectively.  See Note 3.

Capitalization of Costs

We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize interest, insurance, real estate taxes and certain general and administrative costs, including direct payroll, bonus and noncash equity compensation, of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets.

Depreciation and Amortization

Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs 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 regards 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. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized.

The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements.

As discussed above in investments in real estate, 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 intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term.

Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.

Impairment of Long-Lived Assets

In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, 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. In order 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.

Investment in Unconsolidated Real Estate

Investments in unconsolidated real estate in which we have the ability to exercise significant influence (but not control) are accounted for under the equity method of investment.  Under the equity method, we initially record our investment at cost, and subsequently adjust for equity in earnings or losses and cash contributions and distributions. Any difference between the carrying amount of these investments on the balance sheet and the underlying equity in net assets is amortized as an adjustment to equity in income (loss) from unconsolidated real estate over the life of the related asset. Under the equity method of accounting, our net equity investment is reflected within the consolidated balance sheets, and our share of net income or loss from the joint ventures is included within the consolidated statements of operations.  See Note 12.

Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (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 that we derive from our REIT qualifying activities. 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 income tax at regular corporate rates, 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 (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2015 and 2014.

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, 2015 and December 31, 2014, we have not established a liability for uncertain tax positions.

Derivative Instruments and Hedging Activities

FASB 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 8.

Revenue Recognition

We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

Estimated reimbursements from tenants for real estate taxes, 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. Lease termination fees, which are included in rental revenues in the accompanying consolidated statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant.

Revenues from management, leasing and development services are recognized when the related services have been provided and earned.

The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions.

Valuation of Receivables

We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. 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. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We recorded a provision for doubtful accounts of approximately $0.4 million and $0.4 million for the three months ended March 31, 2015 and 2014, respectively, as a reduction to rental revenues in our consolidated statements of operations. We had a $1.3 million and $1.0 million reserve for allowance for doubtful accounts as of March 31, 2015 and December 31, 2014, respectively.

Equity Based Compensation

We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation.  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.  The total compensation expense for these awards is based upon the fair market value of the shares on the grant date, adjusted for estimated forfeitures.  See Note 14.

Equity Offering Costs

Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in capital.

Earnings Per Share

We calculate earnings per share (“EPS”) in accordance with ASC 260 – Earnings Per Share (“ASC 260”).  Under ASC 260, shares of unrestricted stock that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing 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 shares of common stock outstanding for the period. Diluted EPS is computed using the weighted average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15.

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.

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs.

On April 7, 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (“ASU 2015-03”).  ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be 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. ASU 2015-03 is effective for annual and interim periods beginning on or after December 15, 2015, with early adoption permitted on a retrospective basis.  We have elected to adopt ASU 2015-03 early, beginning with the current quarter ended March 31, 2015.  As a result of the adoption of ASU 2015-03, we have reclassified approximately $0.7 million of net debt issuance costs from an asset (previously recorded in the line item “Deferred loan costs, net” in the consolidated balance sheets) to a reduction in the carrying amount of our notes payable as of December 31, 2014.  ASU 2015-03 also expands disclosure requirements to include the face amount of the debt liability and the effective interest rate in the notes to the consolidated financial statements.  See Note 6.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 requires reporting entities to evaluate whether they should consolidate certain legal entities.  ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This ASU affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the ASU using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We are currently assessing the potential impact that the adoption of the ASU 2015-02 will have on our consolidated financial statements.

On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”).  ASU 2014-09 establishes principles for reporting the nature, amount, timing and uncertainty of revenues and cash flows arising from an entity's contracts with customers. The core principle of the new standard is that an entity recognizes revenue to represent the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us in the first quarter of 2017 and will replace most existing revenue recognition guidance within GAAP. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating ASU 2014-09 to determine its impact on our consolidated financial statements and related disclosures, as well as the transition method to apply the new standard.

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Fair Value Measurements - Assets Measures at Fair Value on a Recurring Basis by Level within Fair Value Hierarchy (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest Rate Swap Liabilities	$ (3,279,000)	$ (1,402,000)
Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest Rate Swap Liabilities	$ (3,279,000)	$ (1,402,000)

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Equity - Vesting Schedule of the Nonvested Shares of Restricted Stock Outstanding (Detail)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	420,280	320,017	131,786
Restricted Stock | April 1, 2015 - December 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	106,754
Restricted Stock | 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	112,232
Restricted Stock | 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	140,007
Restricted Stock | 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	42,266
Restricted Stock | 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	19,021

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

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 leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows:

	March 31, 2015			December 31, 2014
Acquired Lease Intangible Assets:
In-place lease intangibles	$	39,385,000		$	37,467,000
Accumulated amortization		(16,193,000	)		(12,975,000	)
In-place lease intangibles, net		23,192,000			24,492,000
Above-market tenant leases		5,002,000			4,971,000
Accumulated amortization		(1,690,000	)		(1,327,000	)
Above-market tenant leases, net		3,312,000			3,644,000
Acquired lease intangible assets, net	$	26,504,000		$	28,136,000
Acquired Lease Intangible Liabilities:
Below-market tenant leases		(3,726,000	)		(3,514,000	)
Accumulated accretion		1,060,000			743,000
Below-market tenant leases, net		(2,666,000	)		(2,771,000	)
Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		53,000			45,000
Above-market ground lease, net		(237,000	)		(245,000	)
Acquired lease intangible liabilities, net	$	(2,903,000	)	$	(3,016,000	)

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 reported periods noted below:

	Three Months Ended March 31,
	2015			2014
In-place lease intangibles (1)	$	3,218,000		$	2,086,000
Net above (below) market tenant leases (2)	$	47,000		$	88,000
Above-market ground lease (3)	$	(8,000	)	$	(8,000	)

(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 above/(below)-market tenant leases is recorded as a decrease to rental revenues in the consolidated statements of operations for the periods presented.

(3) The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated statements of operations for the periods presented.

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Organization - Additional Information (Detail)	Mar. 31, 2015 sqft Property
Real Estate Properties [Line Items]
Number of real estate properties	102
Area of real estate property	10,300,000
Number of real estate properties additionally managed	19
Area of real estate property additionally managed	1,200,000
Maximum
Real Estate Properties [Line Items]
Ownership Interest	100.00%
Joint Venture
Real Estate Properties [Line Items]
Area of real estate property	500,000
Interest percentage owned in joint venture of real estate properties	15.00%
Number of real estate properties owned in joint venture	1

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Investment in Unconsolidated Real Estate

3 Months Ended

Mar. 31, 2015

Schedule Of Investments [Abstract]

Investment in Unconsolidated Real Estate

12. Investment in Unconsolidated Real Estate

We currently manage and hold a 15% equity interest in a joint venture (“the JV”) that indirectly owns one property located at 3233 Mission Oaks Boulevard in Ventura County.  We account for this investment under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments, if applicable).

The following tables present combined summarized financial information of our unconsolidated joint venture properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share, unless otherwise noted:

	Rexford Industrial Realty, Inc.
	March 31, 2015			December 31, 2014
Assets	$	23,664,000		$	23,542,000
Liabilities		(1,355,000	)		(1,274,000	)
Partners'/members' equity	$	22,309,000		$	22,268,000
Company's share of equity	$	3,346,000		$	3,340,000
Basis adjustment(1)		667,000			678,000
Carrying value of the Company's investment in unconsolidated real estate	$	4,013,000		$	4,018,000

(1) This amount represents the difference between our historical cost basis and the basis reflected at the joint venture level, resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013.

	Three Months Ended March 31,
	2015			2014
Revenues	$	663,000		$	1,812,000
Expenses		(622,000	)		(1,605,000	)
Net income	$	41,000		$	207,000

Fees and commissions earned from managing the JV are included in “Management, leasing and development services” in the consolidated statements of operations.  We recorded $44,000 and $139,000 for the three months ended March 31, 2015 and 2014, respectively, in management, leasing and development services revenue.