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Rexford Industrial Reports Q3 2025 Financial Results

On October 15, 2025, Rexford Industrial Realty, Inc. (NYSE: REXR) announced its financial results for the third quarter of 2025, showcasing significant growth across several key indicators. As a prominent real estate investment trust (REIT), Rexford Industrial focuses on maximizing shareholder value through strategic investments and management of industrial properties in Southern California.

Financial Highlights

Rexford reported a net income attributable to common stockholders of $87.1 million, translating to $0.37 per diluted share. This marks an increase from $65.1 million or $0.30 per diluted share compared to the same quarter last year. Additionally, the Company's share of Core Funds From Operations (Core FFO) was $141.7 million, reflecting a 9.0% surge from the previous year, with per share figures rising to $0.60, up 1.7%.

The total Net Operating Income (NOI) for the portfolio reached $188.9 million, indicating a 2.9% growth year-over-year. Furthermore, the Same Property Portfolio demonstrated a 1.9% increase in NOI, with an impressive 96.8% occupancy rate by the end of the quarter.

Leasing Activity and Market Performance

Rexford's strategic leasing initiatives resulted in 3.3 million square feet of new and renewed leases, with net effective rental rates climbing 26.1%. Cash rental rates also saw a healthy increase of 10.3%. Additionally, the Company executed 844,854 square feet of leasing related to repositioning and redevelopment projects, illustrating proactive asset management.

Improved Absorption and Stability

The company also reported 1.9 million square feet of positive net absorption, emphasizing its ability to outperform the broader Southern California industrial market. The ongoing projects and enhancements to existing properties in their portfolio further highlight Rexford's commitment to elevating property performance.

Asset Management and Dispositions

During Q3 2025, Rexford successfully sold three properties for a total of $53.6 million, generating a weighted average unlevered IRR of 14.3%. The sales were part of their strategic dispositions aimed at reinvesting in higher-performing assets. Notably, one transaction involved a specialized research and development property in Irwindale, which generated a considerable return on investment.

Share Buybacks and Financial Strength

Rexford demonstrated robust capital management by repurchasing 3,883,845 shares at an average price of $38.62, totaling $150 million. The company ended the quarter with a flexible balance sheet, showcasing a Net Debt to Enterprise Value ratio of 23.2% and Net Debt to Adjusted EBITDA ratio of 4.1x, underlining its solid financial positioning.

Updated Guidance

With the strong performance in Q3, Rexford updated its guidance for the year, projecting Core FFO per diluted share to be in the range of $2.39 to $2.41, representing a slight increase from previous estimates. Furthermore, the Company indicated it expects continued growth in Same Property NOI and average occupancy levels.

Conclusion

Rexford Industrial Realty's Q3 2025 results highlight its successful strategies for growth, effective asset management, and commitment to providing shareholder value through prudent financial and operational decisions. The company's continued focus on high-demand industrial properties in Southern California positions it well for future success as the market dynamics evolve.

For more information, visit Rexford Industrial's Investor Relations website.