REXR Leases 1.9M Square Feet, Disposes $32M, Grows Rental Rates in QTD

Core Insights - Rexford Industrial Realty (REXR) provided an update on its operations, dispositions, and capital markets for the third quarter of 2025 ahead of investor meetings [1] Leasing Activity - From the beginning of the third quarter through September 2, 2025, REXR executed 1.9 million square feet of new and renewal leases, with an average unit size of 25,000 square feet, including approximately 1,604,000 square feet of new leases and 303,000 square feet of renewal leases [2] - The company also leased 407,000 square feet for repositioning and redevelopment projects during the same period [2] - Comparable rental rates on new and renewal leases increased by 30% on a net effective basis and by 15% on a cash basis in the third quarter [3] - The occupancy rate for the same property portfolio reached 96.6% as of August 31, 2025, a 50-basis-point increase compared to the previous quarter [3] Disposition Update - In the third quarter of 2025, REXR disposed of two properties totaling 76,000 square feet for $32 million [4] - Year-to-date through August 31, 2025, the company disposed of five properties totaling 412,000 square feet for $166 million [4] - REXR has approximately $90 million of dispositions under contract or accepted offer, with no acquisitions under contract or accepted offer [4] Capital Markets Update - In July and August 2025, REXR repurchased 2,697,100 shares of common stock for $100 million under an authorized share repurchase program [5] - On August 29, 2025, the board of directors authorized a new $500 million share repurchase program, replacing the previous $300 million program [5] - In July 2025, REXR repaid a $100 million unsecured senior note with an interest rate of 4.29% using cash on hand [5] Management Commentary - Co-CEOs Michael Frankel and Howard Schwimmer noted that leasing volumes in July and August exceeded the prior full quarter, indicating improving market fundamentals [6] - They highlighted the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets, with healthy double-digit leasing spreads [6] - The management emphasized their commitment to delivering value through accretive capital recycling and a strategic approach to capital allocation [6] - REXR's shares gained 14.1% over the past three months, compared to the industry's growth of 0.3% [6]