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LOS ANGELES - Rexford Industrial Realty, Inc. (NYSE:REXR), a real estate investment trust focused on Southern California industrial properties, reported third-quarter earnings that beat analyst expectations, but shares fell 2%.
The company reported earnings per share of $0.37 for the third quarter, exceeding the analyst estimate of $0.31. Revenue came in at $253.24 million, above the consensus estimate of $245.64 million. Core FFO per diluted share was $0.60, representing a modest 1.7% increase compared to $0.59 in the same quarter last year.
The company raised its 2025 Core FFO guidance slightly to a range of $2.39-$2.41 per share, up just $0.01 at the midpoint from previous guidance.
"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. "Our team continues to execute at a high level, delivering upon our value creation initiatives and outperforming the broader infill market."
The REIT reported Same Property Portfolio NOI growth of 1.9% YoY and Same Property Portfolio Cash NOI growth of 5.5%. Same Property Portfolio ending occupancy was 96.8%, an increase of 60 basis points compared to the prior quarter.
During the quarter, Rexford executed 3.3 million square feet of new and renewal leases with rental rates increasing by 26.1% on a net effective basis and 10.3% on a cash basis compared to prior rents. The company also sold three properties for $53.6 million, generating a weighted average unlevered IRR of 14.3%.
Rexford repurchased approximately 3.9 million shares of common stock at a weighted average price of $38.62 per share for a total of $150 million during the quarter. The company’s board also authorized a new $500 million stock repurchase program, replacing the prior $300 million program.
The company maintained a strong balance sheet with $1.6 billion of total liquidity and no floating rate debt exposure as of quarter-end.
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