Rexford Industrial Announces Third Quarter 2025 Financial Results

Core Insights - Rexford Industrial Realty, Inc. reported strong financial results for Q3 2025, highlighting its ability to create shareholder value through effective leasing and strategic capital allocation [3][4][11]. Financial Results - The company achieved a net income attributable to common stockholders of $87.1 million, or $0.37 per diluted share, compared to $65.1 million, or $0.30 per diluted share, in the same quarter last year [4][11]. - For the nine months ended September 30, 2025, net income attributable to common stockholders was $268.9 million, or $1.16 per diluted share, up from $203.5 million, or $0.94 per diluted share, in the prior year [4][11]. - Core FFO for Q3 2025 was $141.7 million, a 9.0% increase from $130.0 million in the prior year quarter, with Core FFO per diluted share rising to $0.60, a 1.7% increase [5][11]. - Total Portfolio NOI increased by 2.9% year-over-year to $188.9 million, while Cash NOI rose by 6.0% [6][11]. Operational Highlights - The company executed 3.3 million square feet of leasing in Q3 2025, including 845,000 square feet from repositioned or redeveloped properties [3][11]. - Positive net absorption reached 1.9 million square feet, indicating strong demand in the infill market [3][11]. - The Same Property Portfolio NOI increased by 1.9% year-over-year, with Cash NOI up by 5.5% [7][11]. Leasing Activity - A total of 123 leases were executed in Q3 2025, covering 3.3 million square feet, with net effective cash rental rates increasing by 26.1% on a net effective basis and 10.3% on a cash basis [8][11]. - The company stabilized seven repositioning and redevelopment projects totaling 586,435 square feet, achieving a weighted average unlevered stabilized yield of 4.4% [13][14]. Disposition and Capital Allocation - Rexford Industrial disposed of three properties for a total sales price of $53.6 million, generating a weighted average unlevered IRR of 14.3% [15][11]. - The company repurchased 3,883,845 shares of common stock at an average price of $38.62 per share, totaling $150 million, and authorized a new $500 million stock repurchase program [18][11]. Balance Sheet and Liquidity - As of September 30, 2025, the company had total liquidity of $1.6 billion, including $249 million in unrestricted cash [17][11]. - The company ended the quarter with a low-leverage balance sheet, with a Net Debt to Enterprise Value ratio of 23.2% and Net Debt to Adjusted EBITDAre of 4.1x [11][19]. Guidance - The company updated its full-year 2025 guidance, projecting net income attributable to common stockholders per diluted share in the range of $1.44 to $1.46 and Core FFO per diluted share between $2.39 and $2.41 [22][11].