Rexford Industrial Closes $1.2 Billion Industrial Portfolio Sale
The Southern California industrial REIT completed a non-core asset sale that advances a $2.0 billion disposition program and is expected to fund 2027 debt repayment and share repurchases.
Rexford Industrial Realty, Inc. (REXR) closed the sale of an industrial portfolio for approximately $1.2 billion, completing a transaction it had put under contract in August as part of a $2.0 billion disposition initiative for non-core assets.
The Los Angeles-based real estate investment trust, which focuses on industrial properties in infill Southern California, said the closing reflects actions taken to advance the previously announced portfolio realignment. Chief Executive Officer Laura Clark said the close “reflects the decisive actions we have taken to advance our $2.0 billion portfolio realignment and the strong execution of our team.”
The asset purchase had been expected to close by the end of the third quarter of 2026, subject to customary closing conditions. When the company entered the agreement on August 18, it said the 2027 cash NOI yield was estimated at 5.5%, reflecting the anticipated roll-down of above-market in-place rents and expected moveouts.
The planned non-core dispositions generally consist of properties that do not align with the company’s go-forward strategy, including assets with limited long-term value creation potential, elevated competitive supply, shorter remaining lease durations, and above-market in-place rents.
The August agreement brought year-to-date dispositions closed or under contract to $1.5 billion and positioned Rexford Industrial to deliver on full-year disposition guidance of $1.5 billion to $2.0 billion. In July, the company had raised that full-year disposition range as part of the same realignment.
Rexford Industrial said it intends to use net proceeds from the portfolio transaction to support capital allocation priorities, including repayment of debt maturing in 2027, opportunistic repurchases of common stock under a previously announced $1.0 billion share repurchase program, and continued investment in internal repositioning and development projects that offer superior risk-adjusted returns.
Clark, in the August announcement, said the company was concentrating its portfolio around properties it believes offer the strongest long-term cash flow growth and value creation opportunity. The September close is the completion of that recycling step rather than a new contract.