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{\"0\":\"REXR signed 1.9M sq. ft. of new and renewal leases, with 30% net effective rent growth.\",\"1\":\"The REIT sold $32M of assets in Q3, with $90M more dispositions under contract.\",\"2\":\"REXR launched a $500M buyback after repurchasing $100M in shares in July-August.\"}
Rexford Industrial Realty (REXR - Free Report) recently provided an operating, disposition and capital markets update for the third quarter to date in advance of upcoming investor meetings.
Since the beginning of third-quarter through Sept. 2, 2025, this industrial real estate investment trust (REIT) announced that it has executed 1.9 million square feet of new and renewal leases, with an average unit size of 25,000 square feet. This included around 1,604,000 square feet of new leases and 303,000 square feet of renewal leases. In the same period, the company leased 407,000 square feet for repositioning and redevelopment projects.
What is encouraging is that the comparable rental rates on new and renewal leases increased by 30% compared to prior rents on a net effective basis and by 15% on a cash basis in the third quarter through Sept. 2, 2025.
Rexford also experienced solid occupancy, with the same property portfolio occupancy reaching 96.6% as of Aug. 31, 2025, representing a 50-basis-point increase compared to the prior-quarter end.
REXR’s Disposition Update
Rexford continues to focus on its disposition activities. In the third quarter of 2025, it disposed of two properties totaling 76,000 square feet for a total of $32 million. Year to date through Aug. 31, 2025, the company disposed of five properties totaling 412,000 square feet for $166 million.
Rexford has approximately $90 million of dispositions under contract or accepted offer. However, it has no acquisitions under contract or accepted offer.
REXR’s Capital Markets Update
In July and August 2025, REXR repurchased 2,697,100 shares of common stock for $100 million under the share repurchase program previously authorized by the board of directors.
On Aug. 29, 2025, the company's board of directors authorized a new $500 million share repurchase program, which supersedes and replaces the prior $300 million program.
In July 2025, Rexford repaid its $100 million unsecured senior note bearing interest at 4.29% with cash on hand.
Management Commentary
Per Michael Frankel and Howard Schwimmer, co-CEOs of REXR, "Leasing volumes in July and August alone exceeded the prior full quarter, reflecting improving fundamentals in our markets and the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets, with leasing spreads persisting at healthy double-digit levels. Our opportunistic dispositions year to date positioned us to meaningfully accelerate share repurchases, in line with our commitment to delivering value through accretive capital recycling. Looking forward, our differentiated platform, strategic approach to capital allocation and substantial embedded growth position Rexford to drive shareholder value."
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 14.1% compared with the industry's growth of 0.3%.
The Zacks Consensus Estimate for CCI’s 2025 FFO per share has moved 3 cents northward to $4.21 over the past two months.
The Zacks Consensus Estimate for PGRE’s 2025 FFO per share has moved 2 cents upward to 54 cents over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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REXR Leases 1.9M Square Feet, Disposes $32M, Grows Rental Rates in QTD
Key Takeaways
Rexford Industrial Realty (REXR - Free Report) recently provided an operating, disposition and capital markets update for the third quarter to date in advance of upcoming investor meetings.
Since the beginning of third-quarter through Sept. 2, 2025, this industrial real estate investment trust (REIT) announced that it has executed 1.9 million square feet of new and renewal leases, with an average unit size of 25,000 square feet. This included around 1,604,000 square feet of new leases and 303,000 square feet of renewal leases. In the same period, the company leased 407,000 square feet for repositioning and redevelopment projects.
What is encouraging is that the comparable rental rates on new and renewal leases increased by 30% compared to prior rents on a net effective basis and by 15% on a cash basis in the third quarter through Sept. 2, 2025.
Rexford also experienced solid occupancy, with the same property portfolio occupancy reaching 96.6% as of Aug. 31, 2025, representing a 50-basis-point increase compared to the prior-quarter end.
REXR’s Disposition Update
Rexford continues to focus on its disposition activities. In the third quarter of 2025, it disposed of two properties totaling 76,000 square feet for a total of $32 million. Year to date through Aug. 31, 2025, the company disposed of five properties totaling 412,000 square feet for $166 million.
Rexford has approximately $90 million of dispositions under contract or accepted offer. However, it has no acquisitions under contract or accepted offer.
REXR’s Capital Markets Update
In July and August 2025, REXR repurchased 2,697,100 shares of common stock for $100 million under the share repurchase program previously authorized by the board of directors.
On Aug. 29, 2025, the company's board of directors authorized a new $500 million share repurchase program, which supersedes and replaces the prior $300 million program.
In July 2025, Rexford repaid its $100 million unsecured senior note bearing interest at 4.29% with cash on hand.
Management Commentary
Per Michael Frankel and Howard Schwimmer, co-CEOs of REXR, "Leasing volumes in July and August alone exceeded the prior full quarter, reflecting improving fundamentals in our markets and the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets, with leasing spreads persisting at healthy double-digit levels. Our opportunistic dispositions year to date positioned us to meaningfully accelerate share repurchases, in line with our commitment to delivering value through accretive capital recycling. Looking forward, our differentiated platform, strategic approach to capital allocation and substantial embedded growth position Rexford to drive shareholder value."
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 14.1% compared with the industry's growth of 0.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Crown Castle (CCI - Free Report) and Paramount Group (PGRE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CCI’s 2025 FFO per share has moved 3 cents northward to $4.21 over the past two months.
The Zacks Consensus Estimate for PGRE’s 2025 FFO per share has moved 2 cents upward to 54 cents over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.