Rexford Industrial Realty Reports Robust Q2 2025 Financials
Rexford Industrial Realty Reports Strong Second Quarter Financial Results
Rexford Industrial Realty, Inc. (NYSE: REXR), a prominent real estate investment trust (REIT) focused on enhancing value through strategic investments in industrial properties, has shared impressive financial and operational results for the second quarter of 2025.
Quarterly Highlights
During Q2 2025, the company reported net income attributable to common stockholders of $113.4 million, translating to $0.48 per diluted share. This marks a significant increase compared to last year’s quarter, which saw net income of $79.8 million or $0.37 per diluted share.
The company’s share of Core Funds From Operations (FFO) totaled $139.7 million, an impressive increase of 7.8% year-over-year. When viewed on a per diluted share basis, Core FFO was $0.59, reflecting a minor decrease of 1.7% compared to the previous year’s figure of $0.60.
Rexford Industrial also reported a total Portfolio Net Operating Income (NOI) of $186.3 million, representing a 2.9% rise versus the same quarter last year. Alongside this, the Same Property Portfolio NOI surged by 1.1%, driven by a strong real estate market.
Leasing and Occupancy Performance
The second quarter revealed robust leasing activity, with the completion of 1.7 million rentable square feet from new and renewal leases. The company achieved a remarkable 20.9% increase in comparable rental rates based on the net effective rate, along with an 8.1% increase on a cash basis.
As of Q2’s end, the Same Property Portfolio reported an occupancy level of 96.1%, representing a slight increase of 0.4% from the previous quarter. The average occupancy for the same properties stood at 95.9%, showcasing the strength of Rexford Industrial’s strategic location and operational efficiency.
Transaction Highlights
In addition to strong earnings, Rexford Industrial undertook strategic dispositions, selling two properties for a total of $81.6 million, yielding a 12.8% unleveraged internal rate of return (IRR). Year-to-date, the company has successfully disposed of three properties totaling $134.0 million.
The company maintained a low-leverage balance sheet with a Net Debt to Enterprise Value (EV) ratio of 25.0% and a Net Debt to Adjusted EBITDA ratio of 4.0x. Moody's has reaffirmed the Company's Baa2 rating, indicating a stable outlook and strong operational performance amidst fluctuating market conditions.
Insight from Leadership
Michael Frankel and Howard Schwimmer, Co-CEOs, emphasized the resilience of the company's business model, stating, "Our strategic focus on high-demand, low-supply industrial locations positions us favorably in a competitive market. Our strong occupancy rates and robust leasing activity are indicative of the value we deliver to our clients and stakeholders."
Future Outlook
Looking ahead, Rexford Industrial has updated its guidance for the full year 2025, reflecting optimistic projections based on its proficient operational strengths and market capabilities. The company is set to continue its focus on enhancing shareholder value through disciplined investments and innovative asset management strategies.
Dividend Declaration
On an encouraging note, the Board of Directors has authorized a quarterly dividend of $0.43 per share for the third quarter of 2025, demonstrating the company's commitment to delivering consistent returns to its shareholders.
Frequently Asked Questions
What were Rexford Industrial’s net income results for Q2 2025?
Rexford Industrial reported a net income attributable to common stockholders of $113.4 million, or $0.48 per diluted share.
How did the Core Funds From Operations (FFO) perform?
The company reported a Core FFO of $139.7 million, a 7.8% increase from the previous year, with a per diluted share FFO of $0.59.
What is the occupancy rate of the Same Property Portfolio?
The Same Property Portfolio achieved an occupancy rate of 96.1% at the end of Q2 2025, slightly up from the previous quarter.
What strategic transactions did Rexford Industrial complete in Q2 2025?
The company executed dispositions of two properties, generating a total sales price of $81.6 million, reflecting a 12.8% unleveraged IRR.
What dividend did Rexford Industrial declare recently?
The Board authorized a dividend of $0.43 per share for the third quarter of 2025, payable on October 15, 2025.
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