Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher Bad Debt [14] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [14] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially [15] Business Line Data and Key Metrics Changes - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [15] - The company recognized $89 million of real estate impairments related to development sites that are being sold, allowing for the redirection of $285 million of capital into higher-yielding uses [15] Market Data and Key Metrics Changes - Market rents declined 10 basis points in the quarter and 9% year-over-year, with total market rent down 1% in the fourth quarter [9][16] - Vacancy increased 30 basis points during the quarter, and net absorption was negative, reflecting broader market softness [10] Company Strategy and Development Direction - The company is focused on enhancing cash flow quality, driving per share FFO and NAV growth, and optimizing returns for shareholders [6] - A programmatic disposition plan is a key component of the capital allocation strategy, targeting between $400 million and $500 million of dispositions in 2026 [8] - The company aims to reduce G&A as a percentage of revenue below the peer average, with a target of 6% for 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term fundamentals of infill Southern California despite near-term pressures impacting 2026 growth expectations [6] - The company is prioritizing occupancy to drive cash flow and is maintaining rigorous capital discipline in light of current market dynamics [10] - Management believes Rexford is well-positioned to capture recovering demand to drive occupancy and NOI growth [12] Other Important Information - The company executed a strategic early renewal of its largest tenant, Tireco, allowing for significant de-risking of cash flow [10] - The company is committed to aligning executive compensation with shareholder priorities, having recalibrated compensation metrics [9] Q&A Session Summary Question: Can you provide more understanding on the Tireco lease re-signing? - The decision to prioritize occupancy and de-risk future cash flow led to an early renewal of the Tireco lease, which was above market [23][24] Question: How much further do you expect rents to decline? - Management noted signs of stabilization but indicated challenges remain, making it difficult to call an inflection point [28][30] Question: What is driving the occupancy decline? - The occupancy decline is attributed to longer downtime for leasing and repositioning, with specific properties expected to move out [36][39] Question: What industries are on the watch list for bad debt? - The watch list remains similar year-over-year, with a higher concentration in logistics due to specific business issues [43] Question: What are the expected sources and uses of cash for 2026? - The company expects to have $413 million available for deployment after accounting for development spend, which can include share repurchases [78]

Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher bad debt [14] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [14] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially, largely driven by near-term repositioning and development starts [15] Business Line Data and Key Metrics Changes - The company executed 3 million sq ft of leasing in the fourth quarter, meeting guidance expectations [6] - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [15] - The company recognized $89 million of real estate impairments related to development sites that no longer meet investment hurdles, allowing for the redirection of $285 million of capital into higher-yielding uses [15] Market Data and Key Metrics Changes - Market rents declined 10 basis points in the quarter and 9% year-over-year, reflecting broader market softness [9] - Vacancy increased 30 basis points during the quarter, with net absorption being negative, indicating a more measured pace of demand [10] - The company noted that supply under construction in the market is near historic lows, supporting future rent growth potential [11] Company Strategy and Development Direction - The company outlined immediate strategic priorities to enhance cash flow quality, drive per share FFO and NAV growth, and optimize shareholder returns [6] - A programmatic disposition plan is a key component of the broader capital allocation strategy, targeting between $400 million and $500 million of dispositions in 2026 [8] - The company is committed to driving operating efficiencies, targeting a reduction in G&A as a percentage of revenue below the peer average, with a goal of 6% for 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of infill Southern California, despite near-term pressures impacting 2026 growth expectations [6] - The company is maintaining rigorous capital discipline and prioritizing occupancy to drive cash flow, with a focus on maximizing risk-adjusted returns [12] - Management acknowledged the challenges in the current market but emphasized the unique upside potential of the company and its assets [11] Other Important Information - The company opportunistically sold seven properties in 2025, totaling $218 million, and plans to continue recycling capital into accretive opportunities [8] - The company recalibrated executive compensation metrics to align with shareholder priorities, underscoring its commitment to operating in direct alignment with shareholder interests [9] Q&A Session Summary Question: Insights on the Tireco lease re-signing - Management prioritized occupancy and de-risked future cash flow growth by negotiating an early renewal with Tireco, allowing for a strategic three-year lease to reset at market rent sooner [24][25] Question: Expectations for market rent trends - Management noted signs of stabilization in leasing activity but indicated challenges remain, making it difficult to call an inflection point in the market [30][34] Question: Factors driving occupancy decline - The decline in occupancy was attributed to longer downtime for leasing and repositioning, with specific properties expected to move out for redevelopment [37][39] Question: Bad debt and watchlist tenants - Management indicated that the watchlist size remained stable year-over-year, with a concentration in logistics, and emphasized a judicious approach to bad debt reserves [40][43] Question: Expected sources and uses of cash for 2026 - The company expects to have $413 million available for deployment after accounting for development spend, which can include share repurchases or future projects [79]

Financial Data and Key Metrics Changes - Fourth quarter Core FFO per share was $0.59, in line with expectations, driven by higher Same Property NOI growth, lower G&A expense, and accretive share buybacks, partially offset by higher Bad Debt [15] - For the full year, after adjusting for co-CEO transition severance charges and other non-recurring costs, Core FFO per share was $2.40, placing the company at the high end of initial expectations [15] - Total portfolio occupancy ended the quarter at 90.2%, down 160 basis points sequentially [16] Business Line Data and Key Metrics Changes - In 2025, the company signed approximately 2 million sq ft of repositioning and development leases, generating nearly $40 million of annualized incremental NOI [16] - The company recognized $89 million of real estate impairments related to development sites elected for sale, allowing redirection of $285 million of capital into higher-yielding uses [16] Market Data and Key Metrics Changes - Market rents declined 1% in the fourth quarter and have fallen 20% since the peak in early 2023, contributing to pressure on expected re-leasing spreads for 2026 [17] - Vacancy increased by 30 basis points during the quarter, and net absorption was negative, reflecting broader market softness [11] Company Strategy and Development Direction - The company is focused on enhancing cash flow quality, driving per share FFO and NAV growth, and optimizing shareholder returns through a rigorous approach to capital allocation [6][8] - A programmatic disposition plan is in place, targeting between $400 million and $500 million of dispositions in 2026 to recycle capital into accretive opportunities [9] - The company aims to reduce G&A as a percentage of revenue below the peer average, with a target of 6% for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management noted that tenant demand is influenced by macroeconomic forces and elevated market availability, contributing to a more measured pace of demand [10] - The company remains confident in the long-term fundamentals of infill Southern California, despite near-term pressures impacting growth expectations for 2026 [6] - Management emphasized the importance of prioritizing occupancy to maintain cash flow and de-risk future growth [12] Other Important Information - The company executed a strategic early renewal of its largest tenant, Tireco, allowing for significant cash flow preservation [11] - The company is committed to aligning executive compensation with shareholder priorities, having recalibrated incentive compensation metrics [10] Q&A Session Summary Question: Clarification on Tireco lease re-signing - Management prioritized occupancy and de-risked future cash flow growth by negotiating a 3-year lease renewal with Tireco, which was above market [24][25] Question: Expectations for market rent declines - Management indicated that while there are signs of stabilization, they are not ready to call an inflection point in the market yet [30][34] Question: Specifics on occupancy decline - Management noted that the decline in occupancy was driven by longer downtime for repositioning and redevelopment projects [37] Question: Bad debt concerns - Management reported a watch list of tenants with some concentration in logistics, indicating ongoing monitoring of larger tenants [44] Question: Expected sources and uses of cash for 2026 - Management expects to have approximately $413 million available for deployment after accounting for development spend, which can include share repurchases [78]

NYSE: REXR Rexford Industrial Realty Earnings Presentation 4Q 2025 14434-14527 San Pedro Street, South Bay 2390 58K SF Repositioning | 100% Leased in 4Q25 -2442 North American Way, North Orange County Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented herein are based on management's beliefs and assumptions and information currently av ...

Financial Performance - For the quarter ended December 2025, Rexford Industrial reported revenue of $248.1 million, reflecting a year-over-year increase of 2.1% [1] - Earnings per share (EPS) for the quarter was $0.59, a significant increase from $0.27 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $250.22 million, resulting in a revenue surprise of -0.85% [1] - The company achieved an EPS surprise of +1.01%, with the consensus EPS estimate being $0.58 [1] Key Metrics - Rental income was reported at $243.23 million, compared to the average estimate of $247.13 million, representing a year-over-year change of +1.5% [4] - Management and leasing services revenue was $0.2 million, exceeding the average estimate of $0.12 million, with a year-over-year increase of +18% [4] - Interest income was reported at $4.67 million, below the average estimate of $6.07 million, but showed a substantial year-over-year increase of +56.1% [4] - Net earnings per share (diluted) was reported at -$0.30, compared to the average estimate of $0.26 [4] Stock Performance - Shares of Rexford Industrial have returned +4.5% over the past month, outperforming the Zacks S&P 500 composite's +0.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Rexford Industrial (REXR) reported quarterly funds from operations (FFO) of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and showing an increase from $0.58 per share a year ago [1] Financial Performance - The company achieved an FFO surprise of +1.01% for the quarter, and previously had an FFO of $0.6 per share, resulting in a surprise of +1.69% [1][2] - Revenues for the quarter ended December 2025 were $248.1 million, which fell short of the Zacks Consensus Estimate by 0.85%, compared to $242.9 million in the same quarter last year [2] - Over the last four quarters, Rexford Industrial has surpassed consensus FFO estimates four times and revenue estimates three times [2] Stock Performance - Rexford Industrial shares have increased by approximately 4.8% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] Future Outlook - The future performance of Rexford Industrial's stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.62 on revenues of $249.29 million, and for the current fiscal year, it is $2.46 on revenues of $1.01 billion [7] Industry Context - The REIT and Equity Trust - Other industry, to which Rexford Industrial belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Total rental income for Q4 2025 was $243.23 million, a decrease from $246.76 million in Q3 2025[16] - Net operating income (NOI) for Q4 2025 was $183.94 million, down from $188.88 million in Q3 2025[16] - Company share of Core FFO for Q4 2025 was $136.18 million, compared to $141.70 million in Q3 2025, reflecting a 5.9% growth year-over-year[16] - Total revenues for Q4 2025 were $248.1 million, a 2.9% increase from $242.9 million in Q4 2024[31] - Rental income for Q4 2025 was $243.2 million, up from $239.7 million in Q4 2024, representing a 1.0% year-over-year growth[31] - Net loss attributable to common stockholders for Q4 2025 was $(68.7) million, compared to a profit of $59.4 million in Q4 2024[31] - Total operating expenses for Q4 2025 were $155.3 million, an increase of 3.4% from $149.8 million in Q4 2024[31] - Funds From Operations (FFO) for Q4 2025 was $78.3 million, down from $136.7 million in Q4 2024[33] - Core FFO for Q4 2025 was $144.1 million, compared to $136.8 million in Q4 2024, indicating a 5.3% increase[33] - Adjusted EBITDAre for Q4 2025 was $177.81 million, a decrease from $182.62 million in Q3 2025[16] Occupancy and Leasing - Total portfolio occupancy decreased to 90.2% in Q4 2025 from 91.8% in Q3 2025[16] - Average occupancy for the Same Property Portfolio is anticipated to be between 94.8% and 95.3% for the full year 2026[21] - Same Property Portfolio NOI growth was 0.4% in Q4 2025, down from 2.0% in Q3 2025[16] - The overall occupancy rate for the Same Property Portfolio was 96.8% in Q4 2025, an increase of 20 basis points from 96.6% in Q4 2024[55] - The ending occupancy rate for Q4 2025 was 96.5%, showing a 10 basis point improvement from 96.4% in Q4 2024[55] - Total leasing activity for Q4 2025 reached 3,039,567 square feet, with new leases accounting for 1,574,816 square feet and renewal leases for 1,464,751 square feet[81] - The retention rate for Q4 2025 was 61%, with a retention plus backfill rate of 70%[81] - The total number of properties in the SPP was 287 as of December 31, 2025, down from 293 a year earlier[149] Debt and Capitalization - Total equity market capitalization was $9.40 billion at the end of Q4 2025, down from $10.06 billion in Q3 2025[16] - Net debt to total combined market capitalization increased to 24.9% in Q4 2025 from 23.2% in Q3 2025[16] - The company reported a net debt of $3,112,871 thousand as of December 31, 2025, with a net debt to total combined market capitalization ratio of 24.9%[60] - Total debt as of December 31, 2025, is $3.278649 billion with an effective interest rate of 3.732%[66] - Unsecured debt constitutes 97% of total debt, amounting to $3.175 billion, while secured debt is 3% at $103.649 million[67] - The company has a $1.25 billion revolving credit facility maturing on May 30, 2029, with an effective interest rate of 4.595%[66] Guidance and Projections - 2026 guidance for net income attributable to common stockholders per diluted share is projected to be between $1.15 and $1.20[21] - Core FFO per diluted share guidance for 2026 is set at $2.35 to $2.40, reflecting a year-over-year decline of approximately 2.1%[24] - Same Property Portfolio NOI growth is expected to range from (2.5)% to (1.5)% for 2026, with cash NOI growth projected between (2.0)% and (1.0)%[21] - The company plans to dispose of assets valued between $400 million and $500 million in 2026[21] Impairments and Expenses - The company reported an impairment of real estate of $(89.1) million in Q4 2025, reflecting a strategic shift to pursue property sales[31] - General and administrative expenses are expected to be approximately +/- $60 million for 2026[21] - Interest expense is projected to be around +/- $112 million, influenced by various economic factors[21] - The company incurred Co-CEO transition costs of $60,223 million during the quarter[136] Development and Repositioning - The company plans to continue focusing on strategic acquisitions and market expansion to enhance revenue growth in the upcoming quarters[31] - The company plans to continue focusing on repositioning and development strategies to enhance portfolio value[89] - The total estimated investment for properties under repositioning/development is $306.0 million, with a projected stabilized return on cost of 5.0%[103] - The company has future repositioning and development projects totaling 1,112,288 RSF, with projected costs between $140 million and $150 million[108] Shareholder Returns - The company declared a dividend of $0.43 per common share for Q4 2025, unchanged from Q3 2025[16] - The company repurchased 2,443,438 shares of common stock in Q4 2025 at a weighted average price of $40.93 per share, totaling $100.0 million[61] - Common shares outstanding decreased to 229,957,058 as of December 31, 2025, down from 232,297,172 at the end of Q3 2025[61]

LOS ANGELES, Feb. 4, 2026 /PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust ("REIT") focused on creating value by investing in and operating industrial properties throughout infill Southern California, today announced financial and operating results for the fourth quarter and full year 2025. Full Year 2025 Financial and Operational Highlights (all comparisons to Full Year 2024) "We closed 2025 with solid performance and made ...

Core Viewpoint - Rexford Industrial Realty, Inc. has announced the 2025 tax treatment for its common and preferred stock dividend distributions, encouraging shareholders to consult their tax advisors for specific tax implications [1]. Common Stock Summary - The common stock distributions for 2025 include several payments, with the following key figures: - $0.417500 per share payable on January 15, 2025, for shareholders of record as of December 31, 2024, treated as a 2025 distribution for federal income tax purposes [2][3]. - Subsequent distributions of $0.430000 per share are payable on January 15, 2026, with approximately 66.28% ($0.285022) allocable to 2025 for tax purposes [4]. - Total distributions for the year amount to $2.137500 per share, with $1.992522 classified as ordinary dividends and $1.588406 as qualified dividends [2]. Series B Preferred Stock Summary - The Series B Preferred Stock distributions for 2025 include: - Payments of $0.367188 per share on four occasions throughout the year, with a total distribution of $1.468752 per share [5]. - Total ordinary dividends amount to $1.170864, with $0.297888 classified as unrecaptured Section 1250 gain [5]. Series C Preferred Stock Summary - The Series C Preferred Stock distributions for 2025 include: - Payments of $0.351563 per share on four occasions, totaling $1.406252 per share [6]. - Total ordinary dividends amount to $1.121040, with $0.285212 classified as unrecaptured Section 1250 gain [6]. Additional Notes - All capital gain distributions reported for 2025 relate to IRC Section 1231 gains, with zero amounts for "One Year Amounts" and "Three Year Amounts" as required by IRC Section 1061 [8]. - 100% of the capital gain distributions represent gains from dispositions of U.S. real property interests for foreign shareholders [9]. - Rexford Industrial operates in Southern California, a major industrial market, with a portfolio of 420 properties totaling approximately 50.9 million rentable square feet [10].

Core Insights - The article discusses the author's extensive experience in executive management, particularly in the insurance and reinsurance sectors, as well as knowledge of global markets, climate change, and ESG [1]. Group 1 - The author has 36 years of experience in executive management, focusing on insurance/reinsurance and global markets [1]. - The author's academic background includes an honours degree in economics and politics with a focus on economic development [1]. - The author invests in a personal capacity, indicating a hands-on approach to investment [1].