Third Quarter 2025 Financial and Operational Highlights
Net income attributable to common stockholders of $87.1 million, or $0.37 per diluted share, as compared to $65.1 million, or $0.30 per diluted share, for the prior year quarter.
Company share of Core FFO of $141.7 million, an increase of 9.0% as compared to the prior year quarter.
Company share of Core FFO per diluted share of $0.60, an increase of 1.7% as compared to the prior year quarter.
Total Portfolio NOI of $188.9 million, an increase of 2.9% as compared to the prior year quarter.
Same Property Portfolio NOI increased 1.9% and Same Property Portfolio Cash NOI increased 5.5% as compared to the prior year quarter.
Same Property Portfolio ending occupancy of 96.8%, an increase of 60 basis points as compared to the prior quarter.
Average Same Property Portfolio occupancy of 96.5%.
Executed 3.3 million square feet of new and renewal leases. Comparable rental rates increased by 26.1%, compared to prior rents, on a net effective basis and by 10.3% on a cash basis.
Executed 844,854 square feet of leases related to the Company's repositioning and redevelopment projects.
Sold three properties for a total sales price of $53.6 million, generating a weighted average unlevered IRR to the Company of 14.3%.
Repurchased 3,883,845 shares of common stock at a weighted average price of $38.62 per share for a total of $150.0 million.
Increased 2025 Core FFO per diluted share guidance to a range of $2.39-$2.41, up $0.01 at the midpoint.
Ended the quarter with a low-leverage, flexible balance sheet measured by a Net Debt to Enterprise Value ratio of 23.2% and Net Debt to Adjusted EBITDAre of 4.1x.
"Rexford Industrial's strong third quarter results demonstrate the Company's ability to drive value for shareholders," said Michael Frankel and Howard Schwimmer, Co-Chief Executive Officers of the Company. "We executed 3.3 million square feet of leasing, including 845,000 square feet of recently repositioned or redeveloped properties. With 1.9 million square feet of positive net absorption, our team continues to execute at a high level, delivering upon our value creation initiatives and outperforming the broader infill market. Our strategic disposition program funded $150 million of accretive share repurchases, underscoring our commitment to disciplined capital allocation and to delivering durable near- and long-term growth for shareholders."
Financial Results
The Company reported net income attributable to common stockholders for the third quarter of $87.1 million, or $0.37 per diluted share, compared to $65.1 million, or $0.30 per diluted share, for the prior year quarter. For the nine months ended September 30, 2025, net income attributable to common stockholders was $268.9 million, or $1.16 per diluted share, compared to $203.5 million, or $0.94 per diluted share, for the prior year period. Net income for the nine months ended September 30, 2025 includes $86.1 million of gains on sale of real estate, as compared to $18.0 million for the prior year period.
The Company reported its share of Core FFO for the third quarter of $141.7 million, representing a 9.0% increase compared to $130.0 million for the prior year quarter. The Company reported Core FFO of $0.60 per diluted share, representing an increase of 1.7% compared to $0.59 per diluted share for the prior year quarter. For the nine months ended September 30, 2025, Company share of Core FFO was $422.4 million, representing a 10.3% increase compared to $383.1 million for the prior year period. For the nine months ended September 30, 2025, the Company reported Core FFO of $1.82 per diluted share, representing an increase of 2.8% compared to $1.77 per diluted share for the prior year period.
In the third quarter of 2025, the Company's Total Portfolio NOI and Cash NOI increased 2.9% and 6.0%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2025, the Company's Total Portfolio NOI and Cash NOI increased 7.7% and 10.4%, respectively, compared to the prior year period.
In the third quarter of 2025, the Company's Same Property Portfolio NOI and Cash NOI increased 1.9% and 5.5%, respectively, compared to the prior year quarter. For the nine months ended September 30, 2025, the Company's Same Property Portfolio NOI and Cash NOI increased 1.3% and 4.9%, respectively, compared to the prior year period.
Operating Results
Q3 2025 Leasing Activity
Releasing Spreads(1)(2)
# of Leases Executed
SF of
Leasing
Net Effective
Cash
New Leases
69
2,361,131
25.6 %
10.9 %
Renewal Leases
54
904,014
26.5 %
9.9 %
Total Leases
123
3,265,145
26.1 %
10.3 %
(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 include a 504,016-square-foot lease at 1601 Mission Boulevard with a net effective and cash releasing spread of 68.2% and 42.8%, respectively. Excluding this lease, the net effective and cash releasing spreads for total leases are 22.2% and 7.1%, respectively.
As of September 30, 2025, the Company's Same Property Portfolio ending occupancy was 96.8%. Average Same Property Portfolio occupancy for the third quarter was 96.5%. The Company's total portfolio, excluding value-add repositioning and redevelopment assets, was 97.3% occupied and 97.3% leased. The Company's total portfolio, including value-add repositioning and redevelopment assets, was 91.8% occupied and 92.5% leased. The Company's improved land and industrial outdoor storage (IOS) sites, totaling approximately 8.4 million square feet or 191.9 acres, were 97.8% leased as of September 30, 2025.
Transaction Activity
During the third quarter of 2025, the Company executed 11 leases totaling 844,854 square feet of repositioning and redevelopment projects. Year to date, the repositioning and redevelopment leasing totals 1,528,532 square feet across 20 leases.
During the third quarter of 2025, the Company stabilized seven repositioning and redevelopment projects, totaling 586,435 square feet, representing a total investment of $270.6 million. The projects achieved a weighted average unlevered stabilized yield of 4.4% on total investment.
Year to date, the Company stabilized 14 repositioning and redevelopment projects, totaling 1,477,292 square feet, which represent a total investment of $492.0 million. The projects achieved a weighted average unlevered stabilized yield of 5.8% on total investment.
During the third quarter of 2025, the Company disposed of three properties for an aggregate sales price of $53.6 million, including one transaction not previously disclosed. These transactions, totaling 151,760 square feet, generated a weighted average unlevered IRR to the Company of 14.3%.
15715 Arrow Highway, Irwindale, in the Los Angeles–San Gabriel Valley submarket, for $21.6 million, or $264 per square foot. The low-coverage, specialized research and development property, totaling 76,000 square feet, which had been initially slated for redevelopment in 2026, was instead sold to the in-place tenant. The transaction generated an unlevered IRR to the Company of 17.1%.
Year to date, the Company disposed of six properties, totaling 488,145 square feet, for an aggregate sales price of $187.6 million, generating a weighted average unlevered IRR to the Company of 12.6%.
The Company has an additional $160 million of dispositions under contract or accepted offer. These transactions are subject to customary due diligence and closing conditions; as such, there is no guarantee the Company will close on these transactions. The Company currently has no acquisitions under contract or accepted offer.
Balance Sheet
The Company ended the third quarter of 2025 with $1.6 billion of total liquidity, including $249.0 million in unrestricted cash on hand, $65.5 million in restricted cash and $1.245 billion available under its unsecured revolving credit facility.
During the third quarter of 2025, the Company repurchased 3,883,845 shares of its common stock under its stock repurchase programs at a weighted average price of $38.62 per share for a total cost of $150.0 million. In addition, the Company's Board of Directors authorized a new $500.0 million stock repurchase program, which supersedes and replaces the prior $300.0 million program. As of September 30, 2025, $450.0 million remained available under the $500 million program.
During the third quarter of 2025, the Company repaid its $100.0 million unsecured senior note bearing interest at 4.29% with cash on hand.
As of September 30, 2025, the Company had $3.3 billion of outstanding debt, with an average interest rate of 3.7%, and no floating rate debt exposure. The average term-to-maturity of the Company's outstanding debt is 3.5 years with no significant debt maturities until 2027.
Dividends
On October 13, 2025, the Company's Board of Directors authorized a dividend in the amount of $0.43 per share for the fourth quarter of 2025, payable in cash on January 15, 2026, to common stockholders and common unit holders of record as of December 31, 2025.
On October 13, 2025, the Company's Board of Directors authorized a quarterly dividend of $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative Redeemable Preferred Stock, payable in cash on December 31, 2025, to preferred stockholders of record as of December 15, 2025.
Guidance
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)
Q3 2025Updated Guidance
Q2 2025Guidance
Net Income Attributable to Common Stockholders per diluted share
$1.44 - $1.46
$1.38 - $1.42
Company share of Core FFO per diluted share
$2.39 - $2.41
$2.37 - $2.41
Same Property Portfolio NOI Growth, Net Effective
0.75% - 1.25%
0.75% - 1.25%
Same Property Portfolio NOI Growth, Cash
3.75% - 4.25%
2.25% - 2.75%
Average Same Property Portfolio Occupancy (Full Year) (2)
+/- 96.0%
95.5% - 96.0%
General and Administrative Expenses (3)
+/- $82M
+/- $82M
Net Interest Expense
+/- $105M
+/- $107M
(1)
2025 Guidance represents the in-place portfolio as of September 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 September 30, 2025, our 2025 Same Property Portfolio consisted of 288 properties totaling 37.9 million rentable square feet, representing approximately 80% of third quarter 2025 total portfolio NOI.
(3)
2025 General and Administrative expense guidance includes estimated non-cash equity compensation expense of $38.3 million. Non-cash equity compensation includes restricted stock, time-based LTIP units and performance units that are tied to the Company's overall performance and may or may not be realized based on actual results.
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, October 16, 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 Southern California, the world's fourth largest industrial market and consistently the highest-demand with lowest-supply major market in the nation over the long term. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. As of September 30, 2025, Rexford Industrial's high-quality, irreplaceable portfolio comprised 420 properties with approximately 50.9 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member. For more information, please visit rexfordindustrial.com.
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 U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.
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
$ 1.44
$ 1.46
Company share of depreciation and amortization
1.28
1.28
Company share of gains on sale of real estate
(0.36)
(0.36)
Company share of FFO
$ 2.36
$ 2.38
Add: Core FFO adjustments(1)
0.03
0.03
Company share of Core FFO
$ 2.39
$ 2.41
(1)
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, (iv) severance costs and (v) other nonrecurring expenses.
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 ...
