Rexford Industrial Declares Robust Financial Results for Q1 2025

Rexford Industrial Reports First Quarter 2025 Financial Results



Rexford Industrial Realty, Inc., a noted real estate investment trust (REIT) operating in Southern California, has unveiled its financial performance for the first quarter of 2025. The company's latest results highlight noteworthy expansions in several key metrics.

Key Financial Highlights for Q1 2025


The company reported a net income attributable to common stockholders of $68.3 million, translating to $0.30 per diluted share. This represents an increase over the previous year's net income of $58.6 million or $0.27 per diluted share. Significantly, the net income for this quarter included $13.2 million in gains from real estate sales, showcasing a substantial growth trajectory.

Rexford's Core Funds from Operations (FFO) for the first quarter reached $141.0 million, marking a 14.1% increase from $123.5 million year-on-year. The Core FFO per diluted share stood at $0.62, which is a 6.9% uplift compared to the $0.58 of the previous year.

The company's consolidated portfolio recorded a Net Operating Income (NOI) of $193.6 million, reflecting an 18.4% increase year-over-year. The Same Property Portfolio NOI saw a modest 0.7% increase and the Same Property Cash NOI reported a robust 5.0% growth.

Lease Activity and Occupancy Rates


For the first quarter, Rexford executed approximately 2.4 million square feet of new and renewal leases. The comparable rent rates saw significant increases with a 23.8% rise on a net effective basis and a 14.7% rise on a cash basis. The average occupancy rate across Same Property Portfolio remained high at 95.9%.

Looking at individual areas, the occupancy metrics varied slightly, showing 95.6% in Los Angeles County, while Orange County continued to lead with 99.1% occupancy.

Transaction Activity


In terms of disposals, the company sold 1055 Sandhill Avenue for $52.5 million and subsequently sold 20 Icon in Lake Forest for $50.9 million. These transactions yielded unlevered Internal Rates of Return (IRR) of 10.5% and 13.3%, respectively, highlighting the value generated through strong operational strategies.

As of the end of the quarter, the firm maintained a solid balance sheet with a Net Debt to Enterprise Value ratio of 22.8% and a Net Debt to Adjusted EBITDAre ratio of 3.9x. The unrestricted cash on hand was reported at approximately $504.6 million.

Dividends and Future Guidance


The Board of Directors has approved a quarterly dividend of $0.43 per share to be paid in July 2025, affirming the company’s commitment to deliver returns to shareholders. Looking forward, Rexford Industrial has updated its guidance for the remainder of 2025, aiming for a Net Income attributable to common stockholders per diluted share of $1.31 - $1.35 and Core FFO in the range of $2.37 - $2.41.

Executive leadership emphasizes the reliability of their business model and investment-grade balance sheet, which they believe will allow them to navigate the ongoing macroeconomic challenges while continuing to deliver significant value to their shareholders.

Conclusion


Overall, Rexford Industrial’s first quarter results exemplify its robust operational framework, revealing a strong growth outlook bolstered by effective management strategies and a solid investment in high-demand industrial properties across Southern California. As the company moves throughout 2025, stakeholders can remain optimistic about its continued growth and profitability in an evolving market landscape.

Topics General Business)

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