Key Highlights

  • Core FFO was USD 0.60 per diluted share, unchanged from a year earlier.
  • Net income was USD 0.07 per share against USD 0.37, after impairments.
  • Net Debt to adjusted EBITDAre fell to 3.8 times from 4.5 times.
  • Full-year Core FFO guidance rose to USD 2.41 to USD 2.44 per share.

Quarter Results

Rexford Industrial (NYSE:REXR) reported third-quarter 2026 results on Thursday. Net Income attributable to common stockholders was USD 14.6 million, or USD 0.07 per diluted share, against USD 87.1 million, or USD 0.37. The quarter included USD 71.8 million of impairments and USD 23.2 million of gains on real estate sales, against none and USD 28.6 million a year earlier. Over nine months, the net loss was USD 404.4 million, or USD 1.80 per share, after USD 703.4 million of impairments.

Company share of Core FFO was USD 0.60 per diluted share, unchanged, with Capital recycling and lower general and administrative expense offset by lower same property net Operating Income and lower interest income. Nine-month Core FFO was USD 1.85, up 1.6% from USD 1.82.

Same Property and Leasing

Same Property Portfolio NOI fell 2.6% and cash NOI fell 1.1%. The company attributed the decline to effective rent compression, lower average occupancy and higher bad debt, with higher rent abatement affecting the cash measure. Same Property occupancy ended at 96.9%, up 200 basis points from June 30.

The company signed 3.7 million square feet of new and renewal leases, including 599,369 square feet of repositioning and development leases. Comparable rental rates rose 7.1% on a net effective basis and fell 3.0% on a cash basis. One repositioning project of 46,653 square feet was stabilized. CEO Laura Clark said infill Southern California industrial fundamentals continue to improve as tenant Demand rises.

Portfolio Realignment and Balance Sheet

Rexford sold 25 properties for USD 1.3 billion, including a 22-property portfolio for USD 1.2 billion, and has completed USD 1.5 billion of dispositions this year. It repurchased 10.9 million shares for USD 408.7 million at a weighted average of USD 37.59, including USD 100.0 million after quarter end. It repaid USD 485.0 million of debt, made up of USD 60.0 million due in 2026 and USD 425.0 million due in 2027.

Net debt to adjusted EBITDAre fell to 3.8 times from 4.5 times at June 30. A USD 2.9 million gain from terminating Interest Rate swaps followed repayment of a USD 300 million term Loan due May 2027.

Updated Guidance

Core FFO per share is guided at USD 2.41 to USD 2.44, from USD 2.38 to USD 2.43. Net loss per diluted share is guided at USD 1.55 to USD 1.52, from USD 1.32 to USD 1.27. Same Property NOI growth is guided at negative 0.25% to positive 0.25% on a net effective basis and 0.25% to 0.75% on a cash basis, both higher than the prior range. Average Same Property occupancy is guided at 95.8% to 96.0%, and dispositions at USD 1.7 billion to USD 2.0 billion.

Repositioning and development starts are guided at 0.8 million square feet at USD 125 million to USD 130 million, down from 1.2 million square feet and USD 160 million to USD 170 million. General and administrative expense is guided at about USD 57 million and interest expense at about USD 105 million.

Measures to Follow

Core FFO held flat at USD 0.60 while shares were repurchased at USD 37.59 and Leverage fell 0.7 turns. Same Property NOI declined even as occupancy rose, so rent levels and bad debt remain reference points, along with the gap between a 7.1% net effective and negative 3.0% cash rent change. Other items are disposition pace against USD 1.7 billion to USD 2.0 billion, repurchases, impairments and repositioning starts.