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

Rexford Industrial Realty Delivers Strong 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 occupancy rates, increased rental rates, and the successful completion of several repositioning and redevelopment projects.

As of September 30, 2025, Rexford’s total portfolio was 91.8% occupied, with the company’s “Same Property Portfolio” - properties owned for the full period - achieving an occupancy rate of 96.8%. The company executed 360 new and renewal leases totaling 7.4 million square feet, with leasing spreads of 23.9% on a GAAP basis and 11.4% on a cash basis.

Active Capital Recycling Rexford has been actively managing its portfolio, selling six properties for a total gross sales price of $187.6 million and recognizing $86.1 million in gains on the sales. The company used the proceeds from these dispositions to fund its value-add repositioning and redevelopment activities.

During the first nine months of 2025, Rexford stabilized 14 repositioning and redevelopment projects, adding 1.5 million square feet of rentable space to its portfolio. The company also has an additional 16 properties, totaling 1.4 million square feet, currently in the lease-up stage following the completion of construction work. Rexford has a near-term pipeline of 12 more repositioning and redevelopment projects, representing 2.3 million square feet of estimated rentable space upon completion.

Strengthened Balance Sheet and Liquidity Rexford has also been proactive in managing its balance sheet and liquidity position. 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. Additionally, Rexford executed new interest rate swaps to fix the interest rate on its $400 million term loan facility at a lower rate.

As of September 30, 2025, Rexford had $249.0 million in cash and cash equivalents and no outstanding borrowings under its revolving credit facility, providing ample liquidity to fund future growth initiatives. The company’s consolidated indebtedness totaled $3.3 billion, reflecting a net debt to total combined market capitalization of approximately 23.2%.

Outlook and Risks Rexford’s management remains cautiously optimistic about the company’s prospects, citing the favorable long-term supply-demand fundamentals in its target Southern California infill markets. However, they acknowledge that the current macroeconomic and political environment, including changes in trade and tariff policies, interest rate uncertainty, persistent inflation, and global geopolitical unrest, may continue to weigh on tenant demand and market conditions in the near term.

The company’s growth strategy focuses on acquiring leased, stabilized properties as well as those with value-add opportunities to improve functionality and increase cash flow. Rexford also plans to selectively dispose of assets to recycle capital and maintain a strong balance sheet.

Key risks facing the company include general economic conditions, changes in market fundamentals, construction cost inflation and delays, and the potential impact of an epidemic or pandemic that could disrupt operations. Rexford’s management is closely monitoring these factors and adjusting its strategies accordingly to navigate the current environment and position the company for long-term success.

Conclusion Rexford Industrial Realty has delivered impressive financial and operational results in the first nine months of 2025, demonstrating the strength of its portfolio and the effectiveness of its value-add investment strategy. The company’s focus on high-quality, well-located industrial properties in Southern California infill markets, combined with its active asset management and capital recycling initiatives, have positioned Rexford for continued growth and success. While the company faces some near-term headwinds, its strong balance sheet and liquidity provide the flexibility to navigate the current environment and capitalize on future opportunities.