Rexford Industrial raises 2026 Core FFO guidance as third-quarter net income falls to $14.6 million

Rexford Industrial Realty, Inc. (REXR) reported third-quarter 2026 net income attributable to common stockholders of $14.6 million, or $0.07 per diluted share, down from $87.1 million, or $0.37 per diluted share, a year earlier.

The industrial REIT also raised its full-year 2026 guidance for Company share of Core FFO per diluted share. The results and guidance were set out in a press release furnished with the filing.

Here's how the company did:

• Net income attributable to common stockholders: $14.6 million, or $0.07 per diluted share, vs. $87.1 million, or $0.37 per diluted share, a year earlier
• Total revenues: $239.1 million vs. $253.2 million a year earlier
• Company share of Core FFO per diluted share: $0.60 vs. $0.60 a year earlier
• Same Property Portfolio NOI: $144.2 million, down 2.6% from a year earlier
• Nine-month net loss attributable to common stockholders: $404.4 million, or $1.80 per diluted share, vs. net income of $268.9 million, or $1.16 per diluted share, a year earlier

Net income in the quarter included $71.8 million of impairments, compared with none a year earlier. It also included $23.2 million of gains on sale of real estate, down from $28.6 million.

Against the second quarter, net income improved from a net loss of $523.8 million. That period included impairments of $624.8 million.

Adjusted EBITDAre was $156.8 million, down from $182.1 million in the second quarter.

The company said the favorable impact of capital recycling and lower general and administrative expense was offset by lower Same Property Portfolio NOI and lower interest income. Core FFO per diluted share was $0.63 in the second quarter.

General and administrative expense was $13.4 million, down from $20.0 million a year earlier. The company recorded $0.7 million of severance costs, which it said include costs associated with a workforce reduction and reorganization.

The company raised its 2026 Company share of Core FFO per diluted share guidance to $2.41 to $2.44, from $2.38 to $2.43 in the second quarter. Its 2026 net loss per diluted share guidance is ($1.55) to ($1.52), compared with ($1.32) to ($1.27) previously.

Disposition guidance is now $1.7 billion to $2.0 billion, up from a low end of $1.5 billion. Same Property Portfolio cash NOI growth guidance is 0.25% to 0.75%, from (0.75)% to 0.25%.

Net effective Same Property Portfolio NOI growth guidance is (0.25)% to 0.25%, from (1.25)% to (0.25)%. Average Same Property Portfolio occupancy for the full year is now expected at 95.8% to 96.0%, from 95.3% to 95.7%.

Chief Executive Officer Laura Clark said, "Our third quarter performance reflects strong execution across our strategic priorities."

"Infill Southern California industrial market fundamentals continue to improve," Clark said, "with increasing tenant demand driving our strong leasing activity in the quarter."

The company executed 3.7 million square feet of new and renewal leases in the quarter, 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.

Same Property Portfolio ending occupancy was 96.9%. That was up 200 basis points from June 30, 2026, and down 20 basis points from 97.1% a year earlier.

The company sold 25 properties for $1.3 billion in the quarter. That included a previously announced 22-property portfolio sold to an affiliate of EQT Real Estate for $1.2 billion. Year to date, it has disposed of 37 properties for $1.5 billion.

The company repurchased 10.9 million shares for $408.7 million at a weighted average price of $37.59 per share in the quarter. That figure includes $100.0 million of repurchases completed after quarter end. Year-to-date repurchases totaled $708.7 million as of Oct. 22, with $591.3 million remaining under the current program.

The company repaid $485.0 million of debt with cash on hand. That included $60.0 million of 2026 maturities and $425.0 million of 2027 maturities.

At Sept. 30, the company had $1.7 billion of total liquidity. That included $423.6 million of unrestricted cash and $1.245 billion available under its unsecured revolving credit facility.

Outstanding debt was $2.8 billion at a weighted average interest rate of 3.70%, with no floating-rate debt exposure. Net debt to Adjusted EBITDAre was 3.8x, down from 4.5x as of June 30, 2026.

The board authorized a fourth-quarter 2026 dividend of $0.435 per share, unchanged from the prior two quarters. It is payable in cash on Jan. 15, 2027, to holders of record on Dec. 31, 2026.

The board also authorized quarterly preferred dividends of $0.367188 per share on Series B and $0.351563 per share on Series C. Both are payable on Dec. 31, 2026, to holders of record on Dec. 15, 2026.

The company will hold a conference call with executive management on Friday, Oct. 23, at 11:00 a.m. Eastern Time.

The company said its guidance reflects the in-place portfolio as of Oct. 22, along with assumptions about investment activity. It listed interest rates, inflation, tariffs and geopolitical risks, including the war in the Middle East, as factors that could affect results.