Rexford Industrial beats Q2 estimates as rental rates rise 21%

Published 16/07/2025, 21:52
 Rexford Industrial beats Q2 estimates as rental rates rise 21%

LOS ANGELES - Rexford Industrial Realty (NYSE:REXR) reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong leasing activity and substantial rental rate growth in its Southern California portfolio. Shares edged up 0.5% following the announcement.

The industrial real estate investment trust posted net income attributable to common stockholders of $0.48 per diluted share for the second quarter, considerably higher than the analyst estimate of $0.25. Revenue came in at $249.51 million, surpassing the consensus estimate of $245.12 million.

Rexford’s leasing activity showed robust momentum, with the company executing 1.7 million square feet of new and renewal leases during the quarter. Comparable rental rates increased by 20.9% on a net effective basis and 8.1% on a cash basis compared to prior rents.

"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 Southern California, our substantial embedded growth opportunity, fortress-like balance sheet and best-in-class team continue to deliver growing value to our stakeholders."

The company’s Same Property Portfolio NOI increased 1.1% YoY, while Same Property Portfolio Cash NOI rose 3.9%. Same Property Portfolio ending occupancy was 96.1%, an increase of 0.4% compared to the prior quarter.

During the quarter, Rexford sold two properties for a total of $81.6 million, generating a 12.8% unlevered internal rate of return. The company maintained a conservative financial position with a Net Debt to Enterprise Value ratio of 25.0%.

Rexford reaffirmed its full-year 2025 guidance for Core FFO per diluted share of $2.37 to $2.41, while updating its net income attributable to common stockholders per diluted share to a range of $1.38 to $1.42, up from the previous guidance of $1.31 to $1.35.

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