Rexford Industrial Realty Reports Q3 2025 Leasing and Disposition Activity

Rexford Industrial Realty Inc. leased 1.9 million sq. ft. in July and August, surpassing the previous quarter's total. The company also repurchased $100 million of common stock and announced a new $500 million share repurchase program. Rexford sold two properties for $32 million, achieving a weighted average unlevered IRR of 12.4%. The absence of new acquisitions may impact long-term growth prospects.

Rexford Industrial Realty Inc. (NYSE: REXR) has reported robust third-quarter performance, highlighting significant leasing activity and share repurchases. The company leased 1.9 million square feet in July and August 2025, surpassing the previous quarter's total. This achievement resulted in a year-to-date total of 6.0 million square feet leased, reflecting strong market fundamentals and successful repositioning of assets.

The company's same property portfolio occupancy increased by 50 basis points to 96.6% as of August 31, 2025, compared to 96.1% year-to-date. The leasing spreads for new and renewal leases averaged 24% and 13% year-to-date, respectively, with comparable rental rates increasing by 30% and 15% quarter-to-date.

Rexford Industrial also announced the repurchase of $100 million of common stock and the authorization of a new $500 million share repurchase program. The company repurchased 2,697,100 shares at a weighted average price of $37.08 per share during July and August. The new program allows the company to buy shares from time to time in the open market or through private transactions, depending on market conditions and other factors.

In the third quarter, Rexford sold two properties totaling 76,000 square feet for $32.0 million, generating a weighted average unlevered IRR of 12.4%. The properties sold included 1332 & 1336 Rocky Point Drive in Oceanside and 8542 Slauson Avenue in Pico Rivera, both in the San Diego and Los Angeles markets, respectively. These sales generated an unlevered IRR of 14.2% and 10.8%, respectively.

The company's strategic approach to capital allocation and substantial embedded growth position Rexford to drive shareholder value. However, the absence of new acquisitions may impact long-term growth prospects. As of August 31, 2025, Rexford's portfolio comprised 421 properties with approximately 50.9 million rentable square feet occupied by a stable and diverse tenant base.

References:
[1] https://www.marketscreener.com/news/rexford-industrial-provides-operating-disposition-and-capital-markets-update-ce7d59dad88cf02d