1. REXR reported $68.3 million net income for Q1 2025, up 16.6%. 2. Core FFO rose 14.1% to $141 million compared to last year. 3. Same Property NOI growth was steady at 0.7%. 4. Company’s occupancy rates remain strong above 95%. 5. ROIs from property disposals indicate healthy market conditions.
The strong financial performance and solid occupancy rates suggest continued growth potential. In similar scenarios, REXR's stock typically reacts positively due to strong fundamentals.
The increase in earnings, along with a steady occupancy rate, signals strong operational health. This is particularly significant as it aligns with REXR's long-term objectives and market positioning.
REXR's solid growth metrics and strategic portfolio improvements indicate sustained performance over time, similar to past trends where strong quarter performances led to prolonged bullishness.
Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust ("REIT") focused on creating value by investing in and operating industrial properties throughout infill Southern California, today announced financial and operating results for the first quarter of 2025.
"Rexford Industrial delivered solid first quarter performance, underscoring the strength of our platform and the discipline of our execution," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "Our differentiated business model and investment-grade balance sheet will continue to afford us the ability to unlock substantial embedded growth and drive long-term shareholder value, while navigating current macroeconomic uncertainty."
The Company reported net income attributable to common stockholders for the first quarter of $68.3 million, or $0.30 per diluted share, compared to $58.6 million, or $0.27 per diluted share, for the prior year quarter. Net income in the first quarter includes $13.2 million of gains on sale of real estate for which there was no comparable amount during the prior year quarter.
The Company reported Core FFO for the first quarter of $141.0 million, representing a 14.1% increase compared to $123.5 million for the prior year quarter. The Company reported Core FFO of $0.62 per diluted share, representing an increase of 6.9% compared to $0.58 per diluted share for the prior year quarter.
In the first quarter, the Company's consolidated portfolio NOI and Cash NOI increased 18.4% and 20.4%, respectively, compared to the prior year quarter.
In the first quarter, the Company's Same Property Portfolio NOI increased 0.7% compared to the prior year quarter, driven by a 1.2% increase in Same Property Portfolio rental income. Same Property Portfolio Cash NOI increased 5.0% compared to the prior year quarter.
| Type | # of Leases Executed | SF of Leasing | Net Effective Cash |
|---|---|---|---|
| New Leases | 54 | 882,403 | 3.2% |
| Renewal Leases | 84 | 1,511,946 | 29.4% |
| Total Leases | 138 | 2,394,349 | 23.8% |
Net effective and cash rent statistics only include leases in which there is comparable lease data. Please see the Company's supplemental financial reporting package for additional detail.
During the first quarter of 2025, the Company disposed of 1055 Sandhill Avenue, Carson, for $52.5 million or $410 per square foot. The building was sold vacant to a user for an unlevered IRR to the Company of 10.5%.
Subsequent to the quarter, the Company disposed of 20 Icon, Lake Forest, for $50.9 million or $497 per square foot with a 100% occupancy at the time of sale.
The Company ended the first quarter with $504.6 million in unrestricted cash on hand, $50.1 million in restricted cash, and $995.0 million available under its unsecured revolving credit facility. The Company had $3.4 billion of outstanding debt.
On April 14, 2025, the Company's Board of Directors authorized a dividend of $0.43 per share for the second quarter of 2025, payable in cash on July 15, 2025, to common stockholders of record as of June 30, 2025.
The Company is updating its full year 2025 guidance as indicated.
| 2025 Outlook | Initial Guidance | Updated Guidance |
|---|---|---|
| Net Income Attributable to Common Stockholders per diluted share | $1.21 - $1.25 | $1.31 - $1.35 |
| Company share of Core FFO per diluted share | $2.37 - $2.41 | $2.37 - $2.41 |
| Average Same Property Portfolio Occupancy (Full Year) | 95.5% - 96.0% | 95.5% - 96.0% |