Rexford Industrial Provides Operating, Disposition and Capital Markets Update
Rexford Industrial Realty (NYSE:REXR) reported strong operational performance in Q3 2025, highlighted by significant leasing activity and strategic capital allocation. The company executed 77 new and renewal leases totaling 1.9 million square feet in July and August, with rental rates increasing 30% on a net effective basis.
The Same Property Portfolio achieved 96.6% occupancy as of August 31, 2025, representing a 50-basis-point increase from Q2. The company successfully leased 407,000 square feet of repositioned properties during the quarter. In terms of dispositions, Rexford sold two properties for $32.0 million in Q3, bringing year-to-date dispositions to $166.0 million.
On the capital markets front, Rexford repurchased 2.7 million shares for $100 million and received board authorization for a new $500 million share repurchase program. The company also repaid a $100 million unsecured senior note with cash on hand.
Rexford Industrial Realty (NYSE:REXR) ha registrato una solida performance operativa nel 3° trimestre 2025, con un'attività di locazione intensa e una gestione strategica del capitale. La società ha firmato 77 nuovi contratti e rinnovi per un totale di 1,9 milioni di piedi quadrati a luglio e agosto, con i canoni di locazione che sono aumentati del 30% su base netta effettiva.
Il portafoglio delle stesse proprietà ha raggiunto una occupazione del 96,6% al 31 agosto 2025, segnando un aumento di 50 punti base rispetto al 2° trimestre. Durante il trimestre sono state locate con successo 407.000 piedi quadrati di immobili riposizionati. Sul fronte delle dismissioni, Rexford ha venduto due immobili per 32,0 milioni di dollari nel 3° trimestre, portando le dismissioni da inizio anno a 166,0 milioni di dollari.
Sul mercato dei capitali, Rexford ha riacquistato 2,7 milioni di azioni per 100 milioni di dollari e il consiglio ha autorizzato un nuovo programma di riacquisto azionario da 500 milioni di dollari. La società ha inoltre rimborsato con liquidità disponibile un prestito senior non garantito da 100 milioni di dollari.
Rexford Industrial Realty (NYSE:REXR) informó un sólido desempeño operativo en el 3T 2025, destacando una significativa actividad de arrendamiento y una asignación estratégica de capital. La compañía ejecutó 77 contratos nuevos y renovaciones por un total de 1,9 millones de pies cuadrados en julio y agosto, con las rentas incrementándose un 30% en términos netos efectivos.
La Cartera de Propiedades Iguales alcanzó una ocupación del 96,6% al 31 de agosto de 2025, lo que supone un aumento de 50 puntos básicos respecto al 2T. La compañía arrendó con éxito 407.000 pies cuadrados de propiedades reposicionadas durante el trimestre. En cuanto a desinversiones, Rexford vendió dos propiedades por 32,0 millones de dólares en el 3T, elevando las desinversiones acumuladas en el año a 166,0 millones de dólares.
En mercados de capital, Rexford recompró 2,7 millones de acciones por 100 millones de dólares y recibió la autorización del consejo para un nuevo programa de recompra de acciones por 500 millones de dólares. La empresa también pagó con efectivo un bono sénior no garantizado de 100 millones de dólares.
Rexford Industrial Realty (NYSE:REXR)는 2025년 3분기에 강한 운영 실적을 보고했으며, 활발한 임대 활동과 전략적 자본 배분이 두드러졌습니다. 회사는 7월과 8월에 77건의 신규 및 갱신 임대계약, 총 190만 평방피트를 체결했고, 임대료는 순 실질 기준으로 30% 상승했습니다.
동일자산 포트폴리오는 2025년 8월 31일 기준 점유율 96.6%를 기록했으며, 이는 2분기 대비 50 베이시스 포인트 상승한 수치입니다. 분기 동안 리포지셔닝된 자산 407,000 평방피트를 성공적으로 임대했습니다. 매각 측면에서는 Rexford가 3분기에 두 자산을 3,200만 달러에 매각했으며, 연초 이후 매각액은 1억 6,600만 달러에 달합니다.
자본시장 관련으로는 Rexford가 270만 주를 1억 달러에 재매입했고, 이사회로부터 5억 달러 규모의 신규 자사주 재매입 프로그램 승인을 받았습니다. 또한 회사는 보유 현금으로 1억 달러의 무담보 선순위 채권을 상환했습니다.
Rexford Industrial Realty (NYSE:REXR) a affiché une solide performance opérationnelle au 3e trimestre 2025, marquée par une forte activité locative et une allocation stratégique du capital. La société a signé en juillet et août 77 baux nouveaux et renouvellements pour un total de 1,9 million de pieds carrés, avec des loyers en hausse de 30% sur une base nette effective.
Le portefeuille Same Property a atteint un taux d'occupation de 96,6% au 31 août 2025, soit une hausse de 50 points de base par rapport au 2e trimestre. La société a loué avec succès 407 000 pieds carrés de biens repositionnés au cours du trimestre. Concernant les cessions, Rexford a vendu deux biens pour 32,0 millions de dollars au 3e trimestre, portant les cessions depuis le début de l'année à 166,0 millions de dollars.
Sur le plan des marchés de capitaux, Rexford a racheté 2,7 millions d'actions pour 100 millions de dollars et obtenu l'autorisation du conseil pour un nouveau programme de rachat d'actions de 500 millions de dollars. La société a également remboursé avec sa trésorerie une obligation senior non garantie de 100 millions de dollars.
Rexford Industrial Realty (NYSE:REXR) meldete für das 3. Quartal 2025 eine starke operative Leistung mit ausgeprägter Vermietungsaktivität und strategischer Kapitalallokation. Das Unternehmen schloss im Juli und August 77 Neu- und Verlängerungsleasingverträge über insgesamt 1,9 Millionen Quadratfuß ab, wobei die Mietpreise auf Nettobasis effektiv um 30% stiegen.
Das Same-Property-Portfolio erreichte zum 31. August 2025 eine Belegungsquote von 96,6%, ein Anstieg um 50 Basispunkte gegenüber dem 2. Quartal. Im Quartal wurden erfolgreich 407.000 Quadratfuß umpositionierter Immobilien vermietet. Bei Veräußerungen verkaufte Rexford im 3. Quartal zwei Immobilien für 32,0 Millionen US-Dollar, womit die Veräußerungen im Jahresverlauf 166,0 Millionen US-Dollar erreichten.
Am Kapitalmarkt hat Rexford 2,7 Millionen Aktien für 100 Millionen US-Dollar zurückgekauft und vom Vorstand die Genehmigung für ein neues Aktienrückkaufprogramm in Höhe von 500 Millionen US-Dollar erhalten. Zudem tilgte das Unternehmen eine ungesicherte vorrangige Schuldverschreibung über 100 Millionen US-Dollar aus vorhandenen liquiden Mitteln.
- Leasing spreads increased 30% on net effective basis and 15% on cash basis
- Same Property Portfolio occupancy improved by 50 basis points to 96.6%
- Successfully leased 407,000 square feet of repositioned properties with 3.5% annual rent increases
- Dispositions generated strong 12.4% weighted average unlevered IRR
- Board authorized larger $500 million share repurchase program
- Reduced debt by repaying $100 million unsecured senior note
- Average unit size of leases decreased to 25,000 square feet
- No new acquisitions under contract or accepted offer
Insights
Rexford's strong Q3 leasing momentum, improving occupancy, and strategic $100M share repurchase program signal positive operational performance despite market challenges.
Rexford Industrial's Q3 update demonstrates robust operational performance in Southern California's infill industrial market. The company leased 1.9 million square feet in July-August alone, exceeding the entire previous quarter's volume, bringing year-to-date leasing to 6.0 million square feet.
The 50 basis point increase in Same Property Portfolio occupancy (now 96.6%) from Q2 is particularly noteworthy in a market where occupancy pressures have affected many industrial REITs. This increase signals strengthening demand in Rexford's submarkets.
Leasing spreads remain impressively strong at 30% on a net effective basis and 15% on a cash basis for the quarter-to-date, outpacing the year-to-date averages of 24% and 13% respectively. These spreads significantly exceed industrial market averages, highlighting Rexford's advantageous positioning in supply-constrained infill markets.
The successful lease-up of 407,000 square feet of repositioned assets this quarter (1.1 million year-to-date) validates Rexford's value-add strategy. The company is effectively converting underutilized properties into higher-yielding assets, with new leases averaging 3.5% annual rent escalations - above market standard.
On the capital recycling front, Rexford has sold $166 million of non-core assets year-to-date at a weighted average unlevered IRR of 12.0%, effectively harvesting value from mature investments. The company is strategically redeploying this capital through an accelerated share repurchase program, buying back $100 million of stock at an average price of $37.08.
The new $500 million repurchase authorization signals management's confidence in the stock's value proposition and their commitment to opportunistic capital allocation. With no new acquisitions currently under contract, Rexford appears to be prioritizing share repurchases over external growth in the current environment, which is logical given recent REIT valuation metrics.
The repayment of a $100 million 4.29% unsecured note with cash on hand demonstrates balance sheet strength and prudent liability management, especially important as the company navigates a transitioning interest rate environment.
- Leased 1.9 million square feet in July and August of 2025, resulting in 6.0 million square feet leased year to date
- Increased Same Property Portfolio occupancy by 50 basis points compared to 2Q 2025
- Repurchased
$100 million
"We are pleased with the strength of our third quarter operating results to date, which reinforce the positive momentum we are driving across our portfolio," said Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "Leasing volumes in July and August alone exceeded the prior full quarter, reflecting improving fundamentals in our markets and the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets, with leasing spreads persisting at healthy double-digit levels. Our opportunistic dispositions year to date positioned us to meaningfully accelerate share repurchases, in line with our commitment to delivering value through accretive capital recycling. Looking forward, our differentiated platform, strategic approach to capital allocation and substantial embedded growth position Rexford to drive shareholder value."
Operating Activity
In the third quarter to date:
- Executed 77 new and renewal leases comprising 1.9 million square feet, with an average unit size of 25,000 square feet, including approximately 1,604,000 square feet of new leases and 303,000 square feet of renewal leases.
- Comparable rental rates on new and renewal leases increased by
30% compared to prior rents on a net effective basis and by15% on a cash basis quarter to date, resulting in year-to-date average leasing spreads of24% and13% , respectively. - Annual contractual rent increases averaged
3.5% for leases executed quarter to date, resulting in year-to-date average annual contractual rent increases of3.6% . - Same Property Portfolio ending occupancy of
96.6% as of August 31, 2025, a 50-basis-point increase compared to June 30, 2025. - Year-to-date average Same Property Portfolio occupancy of
96.1% . - Leased 407,000 square feet of repositioning and redevelopment projects quarter to date, totaling approximately 1.1 million square feet year to date, including:
- 123,000 square feet at
8888 Balboa Avenue,San Diego , in the Central San Diego submarket. The five-year lease with a solar turbine tenant commenced in August 2025 and includes3.5% annual contractual rent increases. - 105,000 square feet at 3071 Coronado Street,
Anaheim , in theNorth Orange County submarket. The seven-year lease with a logistics and transportation provider commences in December 2025 and includes3.5% annual contractual rent increases. - 72,000 square feet at 11308-11350 Penrose Street,
Sun Valley , in the Greater San Fernando Valley submarket. The seven-year lease with an entertainment equipment storage provider commences in September 2025 and includes3.5% annual contractual rent increases. - 52,000 square feet at 2390-2442 N. American Way,
Orange , in the North Orange County submarket. The five-year lease with an aerospace tenant commences in October 2025 and includes3.5% annual contractual rent increases. - 5.5-acre industrial outdoor storage site featuring a 34,000-square-foot building at 18031 Susana Road,
Compton , in theLos Angeles – South Bay submarket. The three-year lease with a warehousing and transportation provider commences in October 2025 and includes3.5% annual contractual rent increases. - 21,000 square feet at 3211-3233 Mission Oaks Boulevard, Camarillo, in the
Ventura submarket. The three-year lease with a defense contractor commenced in September 2025 and includes3.5% annual contractual rent increases.
- 123,000 square feet at
- Additional notable leasing activity includes:
- 504,000 square feet at 1601 Mission Boulevard, Pomona, in the
Los Angeles – San Gabriel Valley submarket. The five-year lease with a wholesale trade tenant commenced in August 2025 and includes3.5% annual contractual rent increases.
- 504,000 square feet at 1601 Mission Boulevard, Pomona, in the
Disposition Activity
In the third quarter, the Company sold two properties totaling 76,000 square feet for an aggregate sales price of
- 1332 & 1336 Rocky Point Drive,
Oceanside , in theSan Diego –North County submarket, for$14.7 million $288 14.2% . - 8542 Slauson Avenue,
Pico Rivera , in theLos Angeles – Central submarket, for$17.3 million $94 100% occupied at the time of sale. The transaction generated an unlevered IRR to the Company of10.8% .
Year to date through August 31, the Company disposed of five properties totaling 412,000 square feet for an aggregate sales price of
The Company has approximately
Capital Markets Activity
During July and August, the Company repurchased 2,697,100 shares of common stock for
On August 29, the Company's Board of Directors authorized a new
Under the new program, the Company may purchase its shares from time to time in the open market, in privately negotiated transactions or in other transactions as permitted by federal securities laws. The amount and timing of the purchase will depend on a number of factors, including the price and availability of the Company's shares, trading volume and general market conditions, applicable law and other factors deemed relevant in the Company's sole discretion. The stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and the program may be suspended or discontinued at any time.
In July, the Company repaid its
Updated Investor Presentation
An updated investor presentation with additional information is available on the Company's investor relations website 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
Cash Rent Change: Compares the first month cash rent excluding any abatement on new/renewal leases to the last month rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, including space in pre-development/entitlement process, (iii) space that has been vacant for over one year or (iv) lease terms shorter than twelve months.
Net Effective Rent Change: Compares net effective rent, which straightlines rental rate increases and abatements, on new/renewal leases to net effective rent for the most recent expiring lease. Data included for comparable leases only. Comparable leases generally exclude: (i) space that has never been occupied under our ownership, (ii) repositioned/redeveloped space, including space in predevelopment entitlement process, (iii) space that has been vacant for over one year or (iv) lease terms shorter than twelve months.
Same Property Portfolio: The 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 August 31, 2025, and excludes (i) properties that were acquired or sold during the period from January 1, 2024 through August 31, 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". As of August 31, 2025, the Same Property Portfolio consisted of buildings aggregating 37.9 million rentable square feet at 288 of our properties.
Contact
Mikayla Lynch
Director, Investor Relations and Capital Markets
(424) 276-3454
mlynch@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.
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