Rexford Industrial Realty, Inc. current report, 17 March 2022

Rexford Industrial Realty, Inc. - Form 8-K Summary

Business Context and Reporting Period

This Current Report on Form 8-K was filed by Rexford Industrial Realty, Inc. (REXR) on March 17, 2022. The filing discloses a significant acquisition event and the issuance of new securities by the Company's operating partnership, Rexford Industrial Realty, L.P.

Key Financial Metrics and Transaction Details

  • Acquisition Price: Approximately $24.0 million for one industrial property in Southern California (exclusive of closing costs).
  • Payment Structure:
    • Cash: Approximately $12.0 million.
    • Equity: Issuance of 164,998 Series 3 CPOP Units.
  • Series 3 CPOP Units Details:
    • Dividend Rate: 3.00% per annum cumulative cash distributions.
    • Liquidation Preference: $72.72825 per unit (approximately $12.0 million aggregate).
    • Conversion: Convertible into Common Units on a one-for-one basis at the holder's option anytime, or at the Operating Partnership's option on or after March 17, 2027.
    • Ranking: Senior to Common Units; on parity with Series B, Series C, and other existing convertible preferred units.
  • Stock Price: The closing price of REXR common stock on the NYSE on March 17, 2022, was $72.41.

Material Changes

The filing reports the execution of the Eighth Amended and Restated Agreement of Limited Partnership to create the Series 3 CPOP Units. This transaction represents a material change in the Company's capital structure and asset base, adding a new industrial property to the portfolio and increasing the outstanding preferred securities.

Outlook, Risks, and Contingencies

The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard terms of the new securities. The Company provided customary indemnification to the recipients of the Series 3 CPOP Units regarding certain taxable transfers of the Property. The filing incorporates the Eighth Amended and Restated Agreement of Limited Partnership by reference for full legal details.

Investor Verification Checklist

  • Verify the specific location and characteristics of the acquired Southern California industrial property.
  • Review the Eighth Amended and Restated Agreement of Limited Partnership (Exhibit 10.1) for detailed terms regarding the Series 3 CPOP Units.
  • Assess the impact of the $12 million cash outflow on the Company's current liquidity position.
  • Confirm the dilution impact of the 164,998 convertible units on existing common shareholders upon conversion.