Rexford Industrial Realty, Inc. Quarterly Report for the Three and Nine Months Ended September 30, 2025

Rexford Industrial Realty Delivers Strong Financial Performance in 2025

Rexford Industrial Realty, Inc., a leading real estate investment trust (REIT) focused on owning and operating industrial properties in Southern California, has reported impressive financial results for the first nine months of 2025. The company’s net income attributable to common stockholders increased by 32.1% to $268.9 million compared to the same period in the prior year.

Solid Operating Performance Rexford’s core funds from operations (Core FFO), a key metric used to evaluate REIT performance, grew by 10.3% to $422.4 million. Net operating income (NOI), which measures the profitability of the company’s properties, increased by 7.7% to $568.7 million. These strong results were driven by higher rental rates, increased occupancy, and the successful completion of several repositioning and redevelopment projects.

As of September 30, 2025, Rexford’s total portfolio was 91.8% occupied, with its Same Property Portfolio, which includes stabilized properties owned throughout the period, achieving an occupancy rate of 96.8%. The company executed 360 new and renewal leases during the first nine months of the year, totaling 7.4 million rentable square feet, with leasing spreads of 23.9% on a GAAP basis and 11.4% on a cash basis.

Disciplined Capital Allocation Rexford has also been actively managing its portfolio through strategic dispositions. During the first three quarters of 2025, the company sold six properties for a total gross sales price of $187.6 million, recognizing $86.1 million in gains on the sale of real estate. These sales are part of the company’s capital recycling strategy, which allows it to reinvest proceeds into new acquisitions or value-add projects.

In addition to its property sales, Rexford has been focused on completing its repositioning and redevelopment initiatives. The company stabilized 14 repositioning and redevelopment projects during the first nine months of 2025, adding 1.5 million rentable square feet to its portfolio. As of September 30, 2025, Rexford had 12 properties under current repositioning or redevelopment and 16 properties in the lease-up stage, representing significant potential for future growth.

Strengthening the Balance Sheet Rexford has also been proactive in managing its balance sheet and capital structure. In May 2025, the company amended its senior unsecured credit agreement, increasing the borrowing capacity under its revolving credit facility from $1.0 billion to $1.25 billion and extending the maturity dates of its term loan facilities. This provides Rexford with additional financial flexibility to fund future growth initiatives.

The company also executed three interest rate swaps in June 2025 to fix the daily SOFR rate on its $400 million unsecured term loan facility at 3.41375%, effectively reducing its interest rate exposure. Additionally, Rexford paid off the outstanding $100 million balance on its unsecured senior notes in August 2025.

Outlook and Risks Looking ahead, Rexford remains optimistic about the long-term fundamentals of the Southern California industrial real estate market, which continues to exhibit favorable supply-demand dynamics. However, the company acknowledges that near-term volatility may persist due to macroeconomic and political uncertainty, including changes in trade and tariff policy, interest rate fluctuations, inflation, and global geopolitical unrest.

Rexford’s portfolio, which is focused on infill Southern California locations, is well-positioned to serve regional consumption and may be less susceptible to changes in global trade flows compared to larger warehouses in non-infill submarkets. The company’s vertically integrated operating platform and value-add investment and management capabilities also provide a competitive advantage in its target markets.

Nonetheless, Rexford faces several risks that could impact its future performance, including:

• Continued macroeconomic and political uncertainty, which could affect tenant demand and rental rates
• Potential increases in construction costs and delays due to supply chain issues, which could impact the company’s repositioning and redevelopment projects
• The ability to identify and execute on attractive acquisition opportunities to drive future growth
• Potential changes in trade and tariff policies that could disrupt the company’s operations or the broader economy

To mitigate these risks, Rexford will need to remain vigilant in its market analysis, cost management, and capital allocation decisions. The company’s strong balance sheet and access to diverse sources of capital, including its at-the-market equity offering program and unsecured credit facility, should provide the financial flexibility to navigate any near-term challenges.

Conclusion Rexford Industrial Realty has delivered impressive financial and operational results in the first nine months of 2025, demonstrating the strength of its portfolio, the effectiveness of its value-add strategy, and the expertise of its management team. While the company faces some near-term headwinds, its focus on high-quality, infill industrial properties in Southern California and its proactive approach to balance sheet management position it well for continued success in the years ahead.