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LOS ANGELES - Rexford Industrial Realty, Inc. (NYSE: REXR), a real estate investment trust specializing in industrial properties in Southern California, has reported significant leasing and transaction activity for the second quarter of 2025. According to InvestingPro data, the company maintains a "GOOD" overall financial health score and has demonstrated strong revenue growth of 18% over the last twelve months. The company executed leases totaling 1.2 million square feet, with rental rates on new and renewal leases increasing by 17% on a net effective basis and 4% on a cash basis compared to prior rents.
The leasing activity includes approximately 652,000 square feet of renewal leases and 571,000 square feet of new leases, with an average unit size of 17,000 square feet. Notably, Rexford leased a 191,000-square-foot repositioning project at 218 Turnbull Canyon Road in the Los Angeles San Gabriel Valley submarket, which is expected to yield a 9.2% unlevered stabilized cash yield upon the project’s completion in September 2025. The company’s market capitalization currently stands at $8.7 billion, with InvestingPro analysis indicating the stock is trading near its Fair Value.
In transaction updates, Rexford Industrial sold a multi-tenant industrial building at 2270 Camino Vida Roble in San Diego’s North County submarket for $31 million, equating to $289 per square foot. The building was 95.1% occupied at the time of sale and the sale resulted in an 11.9% unlevered internal rate of return for the company. Additionally, the company has $32 million of dispositions under contract or accepted offer, though these transactions are subject to customary closing conditions and there is no guarantee they will be finalized.
Rexford Industrial’s portfolio, as of March 31, 2025, includes 424 properties with approximately 51.0 million rentable square feet, occupied by a diverse tenant base. The company’s strategy focuses on value creation and asset management in the infill Southern California industrial market, which is known for high demand and low supply. InvestingPro data reveals the company has maintained dividend payments for 13 consecutive years, with a current dividend yield of 4.8%. Get access to more exclusive insights and detailed analysis with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
This update is based on a press release statement and comes ahead of upcoming investor meetings, providing a snapshot of the company’s current operational status. It should be noted that forward-looking statements within the press release are not guarantees of future performance and are subject to risks, uncertainties, and assumptions.
In other recent news, Rexford Industrial Realty reported impressive first-quarter 2025 earnings, exceeding analysts’ expectations. The company posted earnings per share of $0.30, surpassing the forecast of $0.27, and reported revenues of $252.29 million against an anticipated $244.36 million. Despite these strong results, Evercore ISI adjusted its price target for Rexford, lowering it to $40 from $43, while maintaining an Outperform rating. The adjustment was based on a review of Rexford’s financial performance and future projections, particularly concerning occupancy and market rent growth.
Rexford’s strategic focus on leasing and redevelopment activities contributed to its robust performance, with the company executing 2.4 million square feet of leases. The firm maintained its full-year 2025 Core Funds From Operations (FFO) outlook, projecting a range of $2.37 to $2.41 per share. Evercore ISI analysts noted that Rexford’s valuation remains attractive, although investor confidence in the Southern California industrial market recovery may take additional time to solidify.
The company continues to leverage its strong tenant base in infill Southern California markets, despite challenges such as market rent declines and economic pressures. With $1.6 billion in liquidity and no significant debt maturities until 2027, Rexford is well-positioned for future growth. Analysts at Evercore ISI highlighted the firm’s cautious approach to stock valuation, reflecting broader market uncertainties.
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