#United States #Los Angeles #Real Estate Investment Trust #Rexford Industrial #NYSE REXR

Rexford Industrial Realty's Q3 2025 Update

Rexford Industrial Realty, Inc., listed under NYSE: REXR, continues to demonstrate robust performance in the highly competitive real estate market of Southern California. As a leading real estate investment trust (REIT) focused on industrial properties, the company has reported significant developments in its operating, disposition, and capital markets activities for the third quarter of 2025.

Strong Leasing Activity

In July and August alone, Rexford successfully executed 77 new and renewal leases, totaling an impressive 1.9 million square feet. This surge reflects a positive shift in market fundamentals, with the company outperforming leasing volumes from previous quarters. Notably, approximately 1.6 million square feet was covered by new leases, while 303,000 square feet comprised renewal leases. This is indicative of growing demand for industrial space in the region.

The average rental rates for these leases saw a remarkable increase of 30% on a net effective basis, and 15% on a cash basis when compared to previous contracts. This has resulted in an average leasing spread of 24% for net effective rents and 13% for cash rents year-to-date. As of August 31, 2025, the occupancy rate for the company's Same Property Portfolio has reached 96.6%, showcasing a 50-basis-point increase from June, 2025.

Some notable leases include a 123,000-square-foot contract with a solar turbine tenant in San Diego, and a 105,000-square-foot agreement with a logistics provider in Anaheim that reflects the ongoing trend toward strong long-term commitments in essential industries. Moreover, the addition of positions in various sectors, including defense and entertainment, further underscores the diversity and stability of Rexford's tenant base.

Disposition and Capital Recycling

Alongside leasing successes, Rexford has also strategically disposed of two properties in the third quarter, generating a total sales price of $32.0 million and achieving an average unlevered Internal Rate of Return (IRR) of 12.4%. This includes the sale of single-tenant industrial buildings in Oceanside and Pico Rivera, both yielding healthy returns for the company.

Year-to-date statistics reveal that Rexford has successfully sold five properties totaling 412,000 square feet for an impressive $166.0 million, at an average unlevered IRR of approximately 12.0%. With a pipeline of approximately $90 million of planned dispositions under contract, the company is well-positioned to continue its focus on capital recycling, boosting shareholder value.

Strategic Financial Management

In terms of capital markets activity, Rexford has been proactive in optimizing its capital structure. The company repurchased over 2.69 million shares of common stock amounting to $100 million at a weighted average price of $37.08 per share during July and August 2025. This strategic move reaffirms Rexford’s commitment to enhance shareholder value, as it has also authorized a new $500 million share repurchase program, superseding the previous $300 million initiative.

The repurchase program allows flexibility in purchasing shares as market conditions fluctuate, further affirming the company's confidence in its financial standing and future growth potential. Additionally, in July, Rexford successfully repaid its $100 million unsecured senior note, which was bearing a 4.29% interest rate, showcasing prudent financial management practices.

A Promising Future

As Rexford Industrial Realty moves forward, the company's strong operating results and strategic initiatives position it well for continued success. Their commitment to creating value through responsible investments and redevelopments in the bustling industrial market of Southern California makes them an appealing investment opportunity. With a total of 421 high-quality properties and around 50.9 million rentable square feet under management, Rexford is set to drive further shareholder value while navigating the complexities of a dynamic market landscape.

For additional information, including the company's updated investor presentation, investors can visit Rexford’s investor relations website at rexfordindustrial.com.