Rexford Industrial leases 1.9 million sq ft, boosts occupancy in Q3

LOS ANGELES - Rexford Industrial Realty, Inc. (NYSE:REXR), a $9.8 billion market cap REIT with a strong InvestingPro Financial Health score of GOOD, has leased 1.9 million square feet of industrial space in July and August 2025, bringing its year-to-date leasing total to 6.0 million square feet, according to a company statement released Tuesday.

The real estate investment trust, which focuses on industrial properties in Southern California, reported a 50 basis point increase in its Same Property Portfolio occupancy compared to the second quarter, reaching 96.6% as of August 31. The company’s strong operational performance is reflected in its impressive 13.7% revenue growth over the last twelve months.

The company executed 77 new and renewal leases during the period, with an average unit size of 25,000 square feet. New leases accounted for approximately 1.6 million square feet, while renewal leases comprised 303,000 square feet.

Rental rates on new and renewal leases increased by 30% on a net effective basis and 15% on a cash basis compared to prior rents during the quarter to date. Annual contractual rent increases averaged 3.5% for leases executed in the period. This robust performance has helped maintain Rexford’s 12-year streak of consecutive dividend increases, as noted by InvestingPro analysts, who have identified multiple additional growth indicators available to subscribers.

Rexford also reported leasing 407,000 square feet of repositioning and redevelopment projects in the quarter to date, including properties in San Diego, Anaheim, and other Southern California submarkets.

On the disposition front, the company sold two properties totaling 76,000 square feet for $32.0 million in the third quarter, generating a weighted average unlevered IRR of 12.4%. Year to date, Rexford has disposed of five properties totaling 412,000 square feet for $166.0 million.

The company repurchased approximately 2.7 million shares of common stock for $100.0 million at a weighted average price of $37.08 per share during July and August. On August 29, Rexford’s Board authorized a new $500 million share repurchase program, replacing the prior $300 million program.

In July, the company repaid a $100.0 million unsecured senior note bearing 4.29% interest using cash on hand.

As of August 31, 2025, Rexford Industrial’s portfolio comprised 421 properties with approximately 50.9 million rentable square feet. The company maintains strong liquidity with a current ratio of 2.67, while trading at a P/E ratio of 29.6. Get comprehensive insights and detailed analysis of Rexford’s performance through the exclusive Pro Research Report, available on InvestingPro, along with 1,400+ other top US stocks.

In other recent news, Rexford Industrial Realty reported outstanding financial results for the second quarter of 2025, significantly surpassing analyst expectations. The company achieved an earnings per share of $0.48, compared to the forecasted $0.25, and revenue reached $249.51 million, exceeding predictions of $245.12 million. Additionally, Rexford has entered into new equity distribution agreements worth up to $1.25 billion with firms such as BMO Capital Markets and BNP Paribas, allowing for the sale of common stock through "at the market" offerings.

In a strategic move, activist investor Elliott Investment Management acquired a significant stake in Rexford, becoming one of its top five shareholders. Meanwhile, BMO Capital raised its price target for Rexford from $39 to $44, maintaining a Market Perform rating, due to improvements in rental rates in the industrial market. Conversely, Evercore ISI downgraded Rexford from Outperform to In Line, citing a delayed recovery in rental rates despite the company beating core funds from operations estimates. These developments highlight the dynamic landscape Rexford is navigating in the real estate sector.

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