Rexford Industrial Announces Second Quarter 2025 Financial Results
Rexford Industrial (NYSE:REXR) reported strong Q2 2025 financial results, with net income of $113.4 million ($0.48 per share), up from $79.8 million in Q2 2024. Core FFO reached $139.7 million ($0.59 per share), showing a 7.8% increase year-over-year. The company achieved notable operational metrics including 96.1% Same Property Portfolio occupancy and impressive leasing spreads of 20.9% on a net effective basis.
The REIT demonstrated solid portfolio management by selling two properties for $81.6 million with a 12.8% unlevered IRR. The company maintains a strong balance sheet with $1.8 billion in total liquidity and a low Net Debt to Enterprise Value ratio of 25.0%. Rexford updated its 2025 guidance, projecting net income per share of $1.38-$1.42 and maintaining Core FFO guidance of $2.37-$2.41 per share.
[ "Net income increased 42% YoY to $113.4 million in Q2 2025", "Core FFO grew 7.8% to $139.7 million compared to prior year quarter", "Strong leasing spreads with 20.9% increase on net effective basis", "Solid liquidity position with $1.8 billion total liquidity", "Strategic property sales generated 12.8% unlevered IRR", "Moody's affirmed Baa2 rating with stable outlook" ]Rexford Industrial (NYSE:REXR) ha riportato risultati finanziari solidi per il secondo trimestre 2025, con un utile netto di 113,4 milioni di dollari (0,48 dollari per azione), in aumento rispetto ai 79,8 milioni del secondo trimestre 2024. Il Core FFO ha raggiunto 139,7 milioni di dollari (0,59 dollari per azione), segnando un incremento del 7,8% su base annua. L'azienda ha ottenuto importanti risultati operativi, tra cui un'occupazione del portafoglio immobiliare identico del 96,1% e notevoli incrementi nei canoni di locazione del 20,9% su base netta effettiva.
Il REIT ha dimostrato una gestione solida del portafoglio vendendo due proprietà per 81,6 milioni di dollari con un IRR non leva del 12,8%. La società mantiene un bilancio robusto con 1,8 miliardi di dollari di liquidità totale e un basso rapporto Debito Netto/Valore d'Impresa del 25,0%. Rexford ha aggiornato le previsioni per il 2025, prevedendo un utile netto per azione tra 1,38 e 1,42 dollari e confermando la guidance del Core FFO tra 2,37 e 2,41 dollari per azione.
- Utile netto aumentato del 42% su base annua a 113,4 milioni di dollari nel Q2 2025
- Core FFO cresciuto del 7,8% a 139,7 milioni di dollari rispetto allo stesso trimestre dell'anno precedente
- Forti incrementi nei canoni di locazione con un aumento del 20,9% su base netta effettiva
- Posizione di liquidità solida con 1,8 miliardi di dollari di liquidità totale
- Vendite strategiche di proprietà hanno generato un IRR non leva del 12,8%
- Moody's ha confermato il rating Baa2 con outlook stabile
Rexford Industrial (NYSE:REXR) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 113,4 millones de dólares (0,48 dólares por acción), aumentando desde 79,8 millones en el segundo trimestre de 2024. El FFO Core alcanzó 139,7 millones de dólares (0,59 dólares por acción), mostrando un incremento del 7,8% interanual. La compañía logró métricas operativas destacadas, incluyendo una ocupación del 96,1% en la cartera de propiedades iguales y spreads de arrendamiento impresionantes del 20,9% en base neta efectiva.
El REIT demostró una sólida gestión de cartera al vender dos propiedades por 81,6 millones de dólares con una TIR sin apalancamiento del 12,8%. La empresa mantiene un balance fuerte con 1,8 mil millones de dólares en liquidez total y una baja relación Deuda Neta a Valor Empresarial del 25,0%. Rexford actualizó sus previsiones para 2025, proyectando un ingreso neto por acción de 1,38 a 1,42 dólares y manteniendo la guía de FFO Core de 2,37 a 2,41 dólares por acción.
- Ingreso neto aumentó un 42% interanual a 113,4 millones de dólares en el Q2 2025
- FFO Core creció un 7,8% a 139,7 millones de dólares comparado con el trimestre anterior
- Fuertes spreads de arrendamiento con un aumento del 20,9% en base neta efectiva
- Posición sólida de liquidez con 1,8 mil millones de dólares en liquidez total
- Ventas estratégicas de propiedades generaron una TIR sin apalancamiento del 12,8%
- Moody's confirmó la calificación Baa2 con perspectiva estable
렉스포드 인더스트리얼 (NYSE:REXR)은 2025년 2분기 강력한 재무 실적을 보고했으며, 순이익은 1억 1,340만 달러(주당 0.48달러)로 2024년 2분기의 7,980만 달러에서 증가했습니다. 핵심 FFO는 1억 3,970만 달러(주당 0.59달러)에 달해 전년 대비 7.8% 성장했습니다. 회사는 동일 자산 포트폴리오 임대율 96.1%와 순실질 기준 20.9%의 인상된 임대 스프레드를 포함한 주목할 만한 운영 지표를 달성했습니다.
이 REIT는 두 개의 부동산을 8,160만 달러에 매각하며 12.8%의 비레버리지 IRR을 기록하는 등 견고한 포트폴리오 관리를 보여주었습니다. 회사는 18억 달러의 총 유동성과 25.0%의 낮은 순부채 대비 기업가치 비율을 유지하며 강력한 재무 상태를 유지하고 있습니다. 렉스포드는 2025년 가이던스를 업데이트하여 주당 순이익을 1.38~1.42달러로 예상하고, 핵심 FFO 가이던스는 주당 2.37~2.41달러를 유지했습니다.
- 2025년 2분기 순이익 전년 대비 42% 증가, 1억 1,340만 달러 기록
- 핵심 FFO 전년 동기 대비 7.8% 증가, 1억 3,970만 달러 달성
- 순실질 기준 20.9% 증가한 강력한 임대 스프레드
- 총 유동성 18억 달러로 견고한 유동성 위치 확보
- 전략적 부동산 매각으로 12.8% 비레버리지 IRR 창출
- 무디스, 안정적 전망과 함께 Baa2 등급 확인
Rexford Industrial (NYSE:REXR) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec un revenu net de 113,4 millions de dollars (0,48 dollar par action), en hausse par rapport à 79,8 millions au deuxième trimestre 2024. Le FFO de base a atteint 139,7 millions de dollars (0,59 dollar par action), soit une augmentation de 7,8 % en glissement annuel. La société a réalisé des indicateurs opérationnels remarquables, notamment un taux d'occupation du portefeuille immobilier identique de 96,1% et des écarts de location impressionnants de 20,9 % sur une base nette effective.
Le REIT a démontré une gestion solide du portefeuille en vendant deux propriétés pour 81,6 millions de dollars avec un TRI non levier de 12,8 %. La société maintient un bilan solide avec 1,8 milliard de dollars de liquidités totales et un faible ratio dette nette sur valeur d'entreprise de 25,0 %. Rexford a mis à jour ses prévisions pour 2025, projetant un revenu net par action de 1,38 à 1,42 dollar et maintenant ses prévisions de FFO de base entre 2,37 et 2,41 dollars par action.
- Le revenu net a augmenté de 42 % en glissement annuel pour atteindre 113,4 millions de dollars au T2 2025
- Le FFO de base a augmenté de 7,8 % pour atteindre 139,7 millions de dollars par rapport au trimestre précédent
- Forts écarts de location avec une augmentation de 20,9 % sur une base nette effective
- Position de liquidité solide avec 1,8 milliard de dollars de liquidités totales
- Ventes stratégiques de propriétés générant un TRI non levier de 12,8 %
- Moody's a confirmé la note Baa2 avec une perspective stable
Rexford Industrial (NYSE:REXR) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 113,4 Millionen US-Dollar (0,48 US-Dollar pro Aktie), gegenüber 79,8 Millionen US-Dollar im zweiten Quartal 2024. Das Core FFO erreichte 139,7 Millionen US-Dollar (0,59 US-Dollar pro Aktie), was einem Anstieg von 7,8 % im Jahresvergleich entspricht. Das Unternehmen erzielte bemerkenswerte operative Kennzahlen, darunter eine Belegungsquote von 96,1 % im gleichen Immobilienportfolio und beeindruckende Mietspannen von 20,9 % auf Nettoeffektbasis.
Der REIT zeigte ein solides Portfoliomanagement durch den Verkauf von zwei Immobilien für 81,6 Millionen US-Dollar mit einem unbelasteten IRR von 12,8 %. Das Unternehmen verfügt über eine starke Bilanz mit 1,8 Milliarden US-Dollar Gesamtl Liquidität und einem niedrigen Netto-Schulden-zu-Unternehmenswert-Verhältnis von 25,0 %. Rexford aktualisierte seine Prognose für 2025 und erwartet ein Nettoergebnis je Aktie von 1,38 bis 1,42 US-Dollar sowie eine unveränderte Core-FFO-Guidance von 2,37 bis 2,41 US-Dollar je Aktie.
- Nettoeinkommen stieg im Jahresvergleich um 42 % auf 113,4 Millionen US-Dollar im Q2 2025
- Core FFO wuchs um 7,8 % auf 139,7 Millionen US-Dollar im Vergleich zum Vorjahresquartal
- Starke Mietspannen mit einem Anstieg von 20,9 % auf Nettoeffektbasis
- Solide Liquiditätsposition mit 1,8 Milliarden US-Dollar Gesamtl Liquidität
- Strategische Immobilienverkäufe erzielten einen unbelasteten IRR von 12,8 %
- Moody's bestätigte das Baa2-Rating mit stabilem Ausblick
- None.
- Core FFO per share decreased 1.7% to $0.59 compared to prior year quarter
- New lease releasing spreads showed negative performance at -17.6% net effective
- Same Property Portfolio NOI growth moderated to just 1.1% YoY
Insights
Rexford delivered mixed Q2 results with strong total portfolio growth but declining per-share FFO amid challenging leasing environment in Southern California.
Rexford Industrial's Q2 2025 results demonstrate both resilience and challenges in the infill Southern California industrial market. The company reported
The Same Property Portfolio metrics reveal moderate growth with NOI increasing
The company's capital recycling strategy continues with
Rexford maintained its full-year Core FFO guidance of
The challenging new leasing environment merits close attention as it could signal moderating demand or increased competition in Rexford's core infill Southern California markets, despite the company's narrative of "long-term, superior supply and demand drivers."
Second Quarter 2025 Financial and Operational Highlights
- Net income attributable to common stockholders of
$113.4 million $0.48 $79.8 million $0.37 - Company share of Core FFO of
$139.7 million 7.8% as compared to the prior year quarter. - Company share of Core FFO per diluted share of
$0.59 1.7% as compared to the prior year quarter. - Total Portfolio NOI of
$186.3 million 2.9% as compared to the prior year quarter. - Same Property Portfolio NOI increased
1.1% and Same Property Portfolio Cash NOI increased3.9% as compared to the prior year quarter. - Same Property Portfolio ending occupancy of
96.1% , an increase of0.4% as compared to the prior quarter. - Average Same Property Portfolio occupancy of
95.9% . - Executed 1.7 million rentable square feet of new and renewal leases. Comparable rental rates increased by
20.9% , compared to prior rents, on a net effective basis and by8.1% on a cash basis. - Signed 519,244 square feet of leases related to the Company's repositioning and redevelopment pipeline, including two leases executed subsequent to quarter end.
- Sold two properties for a total sales price of
$81.6 million 12.8% unlevered IRR to the Company. - Ended the quarter with a low-leverage balance sheet measured by a Net Debt to Enterprise Value ratio of
25.0% and Net Debt to Adjusted EBITDAre of 4.0x. - Moody's affirmed the Company's Baa2 rating with a stable outlook.
"Rexford Industrial maintained strong performance in the second quarter and year to date, demonstrating the resiliency of our business model in today's dynamic market environment," said Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "The long-term, superior supply and demand drivers within infill
Financial Results
The Company reported net income attributable to common stockholders for the second quarter of
The Company reported its share of Core FFO for the second quarter of
In the second quarter, the Company's total portfolio NOI and Cash NOI increased
In the second quarter, the Company's Same Property Portfolio NOI and Cash NOI increased
Operating Results
Q2 2025 Leasing Activity | ||||||||
Releasing Spreads(1)(2) | ||||||||
# of Leases | SF of Leasing | Net Effective | Cash | |||||
New Leases | 41 | 678,727 | (17.6) % | (22.9) % | ||||
Renewal Leases | 58 | 1,020,266 | 31.2 % | 16.3 % | ||||
Total Leases | 99 | 1,698,993 | 20.9 % | 8.1 % | ||||
(1) | Net effective and cash rent statistics only include leases in which there is comparable lease data. Please see the Company's supplemental financial reporting package for additional detail. |
(2) | The net effective and cash releasing spreads for New Leases were disproportionately impacted by a 106,251-square-foot lease with a net effective and cash releasing spread of ( |
As of June 30, 2025, the Company's Same Property Portfolio occupancy was
Transaction Activity
During the second quarter of 2025 and subsequent to quarter end, the Company executed 519,244 square feet of repositioning and redevelopment leases. Year to date, executed repositioning and redevelopment leasing totals 912,342 square feet.
During the second quarter of 2025, the Company stabilized one repositioning and one redevelopment project, totaling 330,602 square feet, representing a total investment of
Year to date, the Company stabilized seven repositioning and redevelopment projects totaling 890,857 square feet, which represent a total investment of
During the second quarter of 2025, as previously disclosed, the Company disposed of 20 Icon,
Year to date, the Company disposed of three properties totaling 336,385 square feet for an aggregate sales price of
The Company has an additional
Balance Sheet
The Company ended the second quarter of 2025 with
On May 30, 2025, the Company amended its senior unsecured credit agreement to, among other changes, increase the borrowing capacity under its unsecured revolving credit facility from
On June 30, 2025, the Company executed three interest rate swap agreements to manage its exposure to changes in SOFR related to
Subsequent to the second quarter of 2025, the Company exercised the second of the three one-year extension options to extend the maturity date of the
As of June 30, 2025, the Company had
On June 30, 2025, Moody's Ratings affirmed the Company's senior unsecured rating of Baa2 with a stable outlook.
Dividends
On July 14, 2025, the Company's Board of Directors authorized a dividend in the amount of
On July 14, 2025, the Company's Board of Directors authorized a quarterly dividend of
The Company is updating its full year 2025 guidance as indicated below. Please refer to the Company's supplemental information package for a complete detail of guidance and the 2025 Guidance Rollforward.
2025 Outlook (1) | Q2 2025 Updated Guidance | Q1 2025 Guidance | ||
Net Income Attributable to Common Stockholders per diluted share | ||||
Company share of Core FFO per diluted share | ||||
Same Property Portfolio NOI Growth — Net Effective | ||||
Same Property Portfolio NOI Growth — Cash | ||||
Average Same Property Portfolio Occupancy (Full Year) (2) | ||||
General and Administrative Expenses (3) | +/- | +/- | ||
Net Interest Expense | +/- | +/- |
(1) | 2025 Guidance represents the in-place portfolio as of June 30, 2025, and does not include any assumptions for additional prospective acquisitions, dispositions or related balance sheet activities that have not closed. |
(2) | As of June 30, 2025, our 2025 Same Property Portfolio consisted of 289 properties totaling 38.0 million rentable square feet representing approximately |
(3) | 2025 General and Administrative expense guidance includes estimated non-cash equity compensation expense of |
A number of factors could impact the Company's ability to deliver results in line with its guidance, including, but not limited to, the potential impacts related to interest rates, inflation, the economy, tariffs, the supply and demand of industrial real estate, the availability and terms of financing to the Company or to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.
Supplemental Information and Updated Earnings Presentation
The Company's supplemental financial reporting package as well as an earnings presentation are available on the Company's investor relations website at ir.rexfordindustrial.com.
Earnings Release, Investor Conference Webcast and Conference Call
A conference call with executive management will be held on Thursday, July 17, 2025, at 1:00 p.m. Eastern Time.
To participate in the live telephone conference call, please access the following dial-in numbers at least five minutes prior to the start time using Conference ID 5314484.
1 (800) 715-9871 (for domestic callers)
1 (646) 307-1963 (for international callers)
A live webcast and replay of the conference call will also be available at ir.rexfordindustrial.com.
About Rexford Industrial
Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the
Definitions / Discussion of Non-GAAP Financial Measures
Funds from Operations (FFO): We calculate FFO 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 GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (or losses) from sales of assets incidental to our business, impairment losses of depreciable operating property or assets incidental to our business, real estate related depreciation and amortization (excluding amortization of deferred financing costs and amortization of above/below-market lease intangibles) 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, other than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate, 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. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance. A reconciliation of net income, the nearest GAAP equivalent, to FFO is set forth below in the Financial Statements and Reconciliations section. "Company Share of FFO" reflects FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders.
Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO for non-comparable items outlined in the "Reconciliation of Net Income to Funds From Operations and Core Funds From Operations" table, which is located in the Financial Statements and Reconciliations section below. We believe that Core FFO is a useful supplemental measure and that by adjusting for items that are not considered by the Company to be part of its on-going operating performance, provides a more meaningful and consistent comparison of the Company's operating and financial performance period-over-period. Because these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may not calculate Core FFO in a consistent manner. Accordingly, our Core FFO may not be comparable to other REITs' Core FFO. Core FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance. "Company Share of Core FFO" reflects Core FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders.
Reconciliation of Net Income Attributable to Common Stockholders per Diluted Share Guidance to Company Share of Core FFO per Diluted Share Guidance:
The following is a reconciliation of the Company's 2025 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Company share of Core FFO per diluted share.
2025 Estimate | |||
Low | High | ||
Net income attributable to common stockholders | $ 1.38 | $ 1.42 | |
Company share of depreciation and amortization | 1.23 | 1.23 | |
Company share of gains on sale of real estate(1) | (0.25) | (0.25) | |
Company share of FFO | $ 2.36 | $ 2.40 | |
Add: Core FFO adjustments(2) | 0.01 | 0.01 | |
Company share of Core FFO | $ 2.37 | $ 2.41 | |
(1) | Reflects the sale of 1055 Sandhill Avenue on March 28, 2025, 20 Icon on April 3, 2025 and 2270 Camino Vida Roble on May 23, 2025. |
(2) | Core FFO adjustments consist of (i) acquisition expenses, (ii) debt extinguishment and modification expenses, (iii) amortization of the loss on termination of interest rate swaps and (iv) severance costs associated with workforce reduction. |
Net Operating Income (NOI): NOI is a non-GAAP measure, which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as rental income from real estate operations 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 a 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. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio. A calculation of NOI for our Same Property Portfolio, as well as a reconciliation of net income to NOI for our Same Property Portfolio, is set forth below in the Financial Statements and Reconciliations section.
Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI: (i) amortization of above/(below) market lease intangibles and amortization of other deferred rent resulting from sale leaseback transactions with below market leaseback payments and (ii) straight-line rent adjustments. 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. We use Cash NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio. A calculation of Cash NOI for our Same Property Portfolio, as well as a reconciliation of net income to Cash NOI for our Same Property Portfolio, is set forth below in the Financial Statements and Reconciliations section.
Same Property Portfolio: Our 2025 Same Property Portfolio is a subset of our total portfolio and includes properties that were wholly owned by us for the period from January 1, 2024 through June 30, 2025, and excludes (i) properties that were acquired or sold during the period from January 1, 2024 through June 30, 2025, and (ii) properties acquired prior to January 1, 2024 that were classified as repositioning/redevelopment (current and future) or lease-up during 2024 and 2025 and select buildings in "Other Repositioning," which we believe will significantly affect the properties' results during the comparative periods. As of June 30, 2025, our 2025 Same Property Portfolio consisted of buildings aggregating 38.0 million rentable square feet at 289 of our properties.
Properties and Space Under Repositioning: Typically defined as properties or units where a significant amount of space is held vacant in order to implement capital improvements that improve the functionality (not including basic refurbishments, i.e., paint and carpet), cash flow and value of that space. A repositioning is generally considered complete once the investment is fully or nearly fully deployed and the property is available for occupancy.
Stabilization Date — Repositioning/Redevelopment Properties: We consider a repositioning/redevelopment property to be stabilized at the earlier of the following: (i) upon rent commencement and achieving
Net Debt to Enterprise Value: As of June 30, 2025, we had consolidated indebtedness of
Net Debt to Adjusted EBITDAre: Calculated as Net Debt divided by annualized Adjusted EBITDAre. We calculate Adjusted EBITDAre as net income (loss) (computed in accordance with GAAP), before interest expense, tax expense, depreciation and amortization, gains (or losses) from sales of depreciable operating property, non-cash stock-based compensation expense, gain (loss) on debt extinguishment and debt modification expenses, acquisition expenses, impairments of right of use assets and the pro-forma effects of acquisitions and dispositions. We believe that Adjusted EBITDAre 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. In addition, we believe Adjusted EBITDAre is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because Adjusted EBITDAre is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, Adjusted EBITDAre should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. Adjusted EBITDAre should not be considered as an alternative to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate Adjusted EBITDAre differently than we do; accordingly, our Adjusted EBITDAre may not be comparable to such other Equity REITs' Adjusted EBITDAre. Adjusted EBITDAre should be considered only as a supplement to net income (as computed in accordance with GAAP) as a measure of our performance. A reconciliation of net income, the nearest GAAP equivalent, to Adjusted EBITDAre is set forth below in the Financial Statements and Reconciliations section.
Contact
Mikayla Lynch
Director, Investor Relations and Capital Markets
(424) 276-3454
mlynch@rexfordindustrial.com
Financial Statements and Reconciliations
Rexford Industrial Realty, Inc. | |||
Consolidated Balance Sheets | |||
(In thousands except share data) | |||
June 30, 2025 | December 31, 2024 | ||
(unaudited) | |||
ASSETS | |||
Land | $ 7,787,021 | $ 7,822,290 | |
Buildings and improvements | 4,594,494 | 4,611,987 | |
Tenant improvements | 186,429 | 188,217 | |
Furniture, fixtures, and equipment | 132 | 132 | |
Construction in progress | 431,807 | 333,690 | |
Total real estate held for investment | 12,999,883 | 12,956,316 | |
Accumulated depreciation | (1,070,684) | (977,133) | |
Investments in real estate, net | 11,929,199 | 11,979,183 | |
Cash and cash equivalents | 431,117 | 55,971 | |
Restricted cash | 130,071 | — | |
Loan receivable, net | 123,474 | 123,244 | |
Rents and other receivables, net | 12,861 | 15,772 | |
Deferred rent receivable, net | 173,691 | 161,693 | |
Deferred leasing costs, net | 71,482 | 67,827 | |
Deferred loan costs, net | 7,892 | 1,999 | |
Acquired lease intangible assets, net | 169,036 | 201,467 | |
Acquired indefinite-lived intangible asset | 5,156 | 5,156 | |
Interest rate swap assets | 3,586 | 8,942 | |
Other assets | 15,765 | 26,964 | |
Assets associated with real estate held for sale, net | 6,282 | — | |
Total Assets | $ 13,079,612 | $ 12,648,218 | |
LIABILITIES & EQUITY | |||
Liabilities | |||
Notes payable | $ 3,347,575 | $ 3,345,962 | |
Interest rate swap liability | 667 | — | |
Accounts payable, accrued expenses and other liabilities | 124,814 | 149,707 | |
Dividends and distributions payable | 105,594 | 97,823 | |
Acquired lease intangible liabilities, net | 129,683 | 147,473 | |
Tenant security deposits | 90,757 | 90,698 | |
Tenant prepaid rents | 85,494 | 90,576 | |
Liabilities associated with real estate held for sale | 4 | — | |
Total Liabilities | 3,884,588 | 3,922,239 | |
Equity | |||
Rexford Industrial Realty, Inc. stockholders' equity | |||
Preferred stock, | |||
| 72,443 | 72,443 | |
| 83,233 | 83,233 | |
Common Stock, | 2,367 | 2,253 | |
Additional paid in capital | 9,140,264 | 8,601,276 | |
Cumulative distributions in excess of earnings | (462,309) | (441,881) | |
Accumulated other comprehensive loss | 1,092 | 6,746 | |
Total stockholders' equity | 8,837,090 | 8,324,070 | |
Noncontrolling interests | 357,934 | 401,909 | |
Total Equity | 9,195,024 | 8,725,979 | |
Total Liabilities and Equity | $ 13,079,612 | $ 12,648,218 | |
Rexford Industrial Realty, Inc. | |||||||
Consolidated Statements of Operations | |||||||
(Unaudited and in thousands, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
REVENUES | |||||||
Rental income | $ 241,568 | $ 232,973 | $ 490,389 | $ 443,963 | |||
Management and leasing services | 132 | 156 | 274 | 288 | |||
Interest income | 7,807 | 4,444 | 11,131 | 7,418 | |||
TOTAL REVENUES | 249,507 | 237,573 | 501,794 | 451,669 | |||
OPERATING EXPENSES | |||||||
Property expenses | 55,298 | 51,905 | 110,559 | 99,387 | |||
General and administrative | 19,752 | 19,307 | 39,620 | 39,287 | |||
Depreciation and amortization | 71,188 | 67,896 | 157,928 | 134,174 | |||
TOTAL OPERATING EXPENSES | 146,238 | 139,108 | 308,107 | 272,848 | |||
OTHER EXPENSES | |||||||
Other expenses | 244 | 304 | 2,483 | 1,712 | |||
Interest expense | 26,701 | 28,412 | 53,989 | 43,083 | |||
TOTAL EXPENSES | 173,183 | 167,824 | 364,579 | 317,643 | |||
Debt extinguishment and modification expenses | (291) | — | (291) | — | |||
Gains on sale of real estate | 44,361 | 16,268 | 57,518 | 16,268 | |||
NET INCOME | 120,394 | 86,017 | 194,442 | 150,294 | |||
Less: net income attributable to noncontrolling | (4,060) | (3,541) | (6,909) | (6,447) | |||
NET INCOME ATTRIBUTABLE TO REXFORD | 116,334 | 82,476 | 187,533 | 143,847 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: earnings attributable to participating | (592) | (409) | (1,131) | (827) | |||
NET INCOME ATTRIBUTABLE TO COMMON | $ 113,427 | $ 79,752 | $ 181,773 | $ 138,391 | |||
Net income attributable to common stockholders | $ 0.48 | $ 0.37 | $ 0.78 | $ 0.64 | |||
Net income attributable to common stockholders | $ 0.48 | $ 0.37 | $ 0.78 | $ 0.64 | |||
Weighted-average shares of common stock | 236,099 | 217,389 | 231,771 | 215,895 | |||
Weighted-average shares of common stock | 236,099 | 217,389 | 231,771 | 215,913 | |||
Rexford Industrial Realty, Inc. | |||||
Same Property Portfolio Occupancy and NOI and Cash NOI | |||||
(Unaudited, dollars in thousands) | |||||
Same Property Portfolio Occupancy | |||||
June 30, | |||||
2025 | 2024 | Change (basis | |||
Quarterly Weighted Average Occupancy:(1) | |||||
95.6 % | 97.1 % | (150) bps | |||
99.0 % | 99.7 % | (70) bps | |||
96.6 % | 96.7 % | (10) bps | |||
96.1 % | 96.0 % | 10 bps | |||
91.4 % | 94.4 % | (300) bps | |||
Same Property Portfolio Weighted Average Occupancy | 95.9 % | 97.0 % | (110) bps | ||
Ending Occupancy: | 96.1 % | 97.4 % | (130) bps | ||
(1) | Calculated by averaging the occupancy rate at the end of each month in 2Q-2025 and March 2025 (for 2Q-2025) and the end of each month in 2Q-2024 and March 2024 (for 2Q-2024). |
Same Property Portfolio NOI and Cash NOI | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | $ | % | 2025 | 2024 | $ | % | ||||||||
Rental income | $ 3,470 | 1.8 % | $ 5,642 | 1.5 % | |||||||||||
Property expenses | 42,060 | 40,242 | 1,818 | 4.5 % | 83,534 | 80,500 | 3,034 | 3.8 % | |||||||
Same Property Portfolio | $ 1,652 | 1.1 % | $ 2,608 | 0.9 % | |||||||||||
Straight line rental revenue | (4,804) | (7,503) | 2,699 | (36.0) % | (7,959) | (14,758) | 6,799 | (46.1) % | |||||||
Above/(below) market lease | (5,129) | (6,034) | 905 | (15.0) % | (10,001) | (12,471) | 2,470 | (19.8) % | |||||||
Same Property Portfolio | $ 5,256 | 3.9 % | 4.5 % | ||||||||||||
Rexford Industrial Realty, Inc. | |||||||
Reconciliation of Net Income to NOI, Cash NOI, Same Property Portfolio NOI and | |||||||
Same Property Portfolio Cash NOI | |||||||
(Unaudited and in thousands) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $ 120,394 | $ 86,017 | $ 194,442 | $ 150,294 | |||
General and administrative | 19,752 | 19,307 | 39,620 | 39,287 | |||
Depreciation and amortization | 71,188 | 67,896 | 157,928 | 134,174 | |||
Other expenses | 244 | 304 | 2,483 | 1,712 | |||
Interest expense | 26,701 | 28,412 | 53,989 | 43,083 | |||
Debt extinguishment and modification expenses | 291 | — | 291 | — | |||
Management and leasing services | (132) | (156) | (274) | (288) | |||
Interest income | (7,807) | (4,444) | (11,131) | (7,418) | |||
Gains on sale of real estate | (44,361) | (16,268) | (57,518) | (16,268) | |||
Net operating income (NOI) | $ 186,270 | $ 181,068 | $ 379,830 | $ 344,576 | |||
Straight line rental revenue adjustment | (6,918) | (9,567) | (12,435) | (16,935) | |||
Above/(below) market lease revenue | (5,788) | (7,268) | (14,974) | (14,859) | |||
Cash NOI | $ 173,564 | $ 164,233 | $ 352,421 | $ 312,782 | |||
NOI | $ 186,270 | $ 181,068 | $ 379,830 | $ 344,576 | |||
Non-Same Property Portfolio rental income | (49,915) | (44,790) | (110,377) | (69,593) | |||
Non-Same Property Portfolio property | 13,238 | 11,663 | 27,025 | 18,887 | |||
Same Property Portfolio NOI | $ 149,593 | $ 147,941 | $ 296,478 | $ 293,870 | |||
Straight line rental revenue adjustment | (4,804) | (7,503) | (7,959) | (14,758) | |||
Above/(below) market lease revenue | (5,129) | (6,034) | (10,001) | (12,471) | |||
Same Property Portfolio Cash NOI | $ 139,660 | $ 134,404 | $ 278,518 | $ 266,641 | |||
Rexford Industrial Realty, Inc. | |||||||
Reconciliation of Net Income to Funds From Operations and Core Funds From Operations | |||||||
(Unaudited and in thousands, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $ 120,394 | $ 86,017 | $ 194,442 | $ 150,294 | |||
Adjustments: | |||||||
Depreciation and amortization | 71,188 | 67,896 | 157,928 | 134,174 | |||
Gains on sale of real estate | (44,361) | (16,268) | (57,518) | (16,268) | |||
Funds From Operations (FFO) | $ 147,221 | $ 137,645 | $ 294,852 | $ 268,200 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: FFO attributable to noncontrolling interests(1) | (4,962) | (5,410) | (10,356) | (10,598) | |||
Less: FFO attributable to participating securities(2) | (728) | (582) | (1,478) | (1,152) | |||
Company share of FFO | $ 139,216 | $ 129,338 | $ 278,389 | $ 251,821 | |||
Company Share of FFO per common share – basic | $ 0.59 | $ 0.59 | $ 1.20 | $ 1.17 | |||
Company Share of FFO per common share – diluted | $ 0.59 | $ 0.59 | $ 1.20 | $ 1.17 | |||
FFO | $ 147,221 | $ 137,645 | $ 294,852 | $ 268,200 | |||
Adjustments: | |||||||
Acquisition expenses | 23 | 58 | 102 | 108 | |||
Debt extinguishment and modification expenses | 291 | — | 291 | — | |||
Amortization of loss on termination of interest rate | — | 59 | — | 118 | |||
Non-capitalizable demolition costs | — | 129 | 365 | 1,127 | |||
Severance costs associated with workforce | 199 | — | 1,682 | — | |||
Core FFO | $ 147,734 | $ 137,891 | $ 297,292 | $ 269,553 | |||
Less: preferred stock dividends | (2,315) | (2,315) | (4,629) | (4,629) | |||
Less: Core FFO attributable to noncontrolling | (4,979) | (5,418) | (10,440) | (10,644) | |||
Less: Core FFO attributable to participating | (731) | (583) | (1,491) | (1,158) | |||
Company share of Core FFO | $ 139,709 | $ 129,575 | $ 280,732 | $ 253,122 | |||
Company share of Core FFO per common share – | $ 0.59 | $ 0.60 | $ 1.21 | $ 1.17 | |||
Company share of Core FFO per common share – | $ 0.59 | $ 0.60 | $ 1.21 | $ 1.17 | |||
Weighted-average shares of common stock | 236,099 | 217,389 | 231,771 | 215,895 | |||
Weighted-average shares of common stock | 236,099 | 217,389 | 231,771 | 215,913 | |||
(1) | Noncontrolling interests relate to interests in the Company's operating partnership, represented by common units and preferred units (Series 1, 2 & 3 CPOP units) of partnership interests in the operating partnership that are owned by unit holders other than the Company. On April 10, 2024, we exercised our conversion right to convert all Series 1 CPOP units into OP units. On March 6, 2025, we exercised our conversion right to convert all remaining Series 2 CPOP units into OP Units. |
(2) | Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units. |
(3) | Amounts are included in the line item "Other expenses" in the consolidated statements of operations. |
Rexford Industrial Realty, Inc. | |||||||
Reconciliation of Net Income to Adjusted EBITDAre | |||||||
(Unaudited and in thousands) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $ 120,394 | $ 86,017 | $ 194,442 | $ 150,294 | |||
Interest expense | 26,701 | 28,412 | 53,989 | 43,083 | |||
Depreciation and amortization | 71,188 | 67,896 | 157,928 | 134,174 | |||
Gains on sale of real estate | (44,361) | (16,268) | (57,518) | (16,268) | |||
EBITDAre | $ 173,922 | $ 166,057 | $ 348,841 | $ 311,283 | |||
Stock-based compensation amortization | 10,091 | 11,057 | 19,790 | 20,145 | |||
Debt extinguishment and modification | 291 | — | — | — | |||
Acquisition expenses | 23 | 58 | 102 | 108 | |||
Pro forma effect of acquisitions | — | 1,058 | — | 13,901 | |||
Pro forma effect of dispositions(1) | (216) | (124) | (54) | (124) | |||
Adjusted EBITDAre | $ 184,111 | $ 178,106 | $ 368,679 | $ 345,313 | |||
(1) | Represents the estimated impact on second quarter 2025 EBITDAre of second quarter 2025 dispositions as if they had been sold as of April 1, 2025 and the impact on second quarter 2024 EBITDAre of second quarter 2024 dispositions as if they had been sold as of April 1, 2024. |
View original content:https://www.prnewswire.com/news-releases/rexford-industrial-announces-second-quarter-2025-financial-results-302507239.html
SOURCE Rexford Industrial Realty, Inc.
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