Rexford Raises 2026 Core FFO Outlook After Portfolio Sales

The Tip Desk · October 23, 2026 · 4 min read

The industrial REIT lifted full-year Core FFO guidance to $2.41 to $2.44 a share after $1.3 billion of third-quarter dispositions and a 7.1% net-effective leasing-rate gain.

Rexford Industrial Realty (REXR), a real estate investment trust focused on infill Southern California industrial properties, raised its 2026 Core FFO per diluted share outlook to $2.41 to $2.44 from $2.38 to $2.43 after a third quarter in which it sold 25 properties for $1.3 billion and posted a 7.1% net-effective increase in comparable leasing rates.

The company also lifted full-year Same Property Portfolio NOI growth guidance to a range of minus 0.25% to 0.25% on a net-effective basis and 0.25% to 0.75% on a cash basis, from minus 1.25% to minus 0.25% net effective and minus 0.75% to 0.25% cash. Disposition guidance moved to $1.7 billion to $2.0 billion from $1.5 billion to $2.0 billion. Repositioning and development starts were cut to 0.8 million square feet and $125 million to $130 million of estimated project costs from 1.2 million square feet and $160 million to $170 million.

Net income attributable to common stockholders was $14.6 million, or $0.07 a share, including $71.8 million of impairments and $23.2 million of gains on sale of real estate. Company share of Core FFO was $0.60 a share, consistent with the year-earlier quarter. The company said the Core FFO result reflected capital recycling and lower general and administrative expense, offset by lower Same Property Portfolio NOI and lower interest income.

Same Property Portfolio NOI declined 2.6% versus the third quarter of 2025, after a 0.5% year-over-year decline in the second quarter and a 0.9% year-over-year increase in the first quarter. Cash NOI fell 1.1%, reversing a 1.5% year-over-year increase in the second quarter. The company attributed the NOI decline primarily to effective rental-rate compression, lower average occupancy and higher bad debt expense; the Cash NOI decline to higher rent abatement, lower average occupancy and higher bad debt, partly offset by annual contractual rent increases. Average Same Property Portfolio occupancy was 95.6%. Ending occupancy was 96.9% as of September 30, 2026, up 200 basis points from June 30.

Leasing volume was 3.7 million square feet, 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, versus a 2.8% net-effective and 11.3% cash decline in the second quarter. New leases of 2.2 million square feet were 2.3% higher net effective and 7.0% lower cash; renewals of 1.6 million square feet were 10.8% higher net effective and 0.1% higher cash. The company said infill Southern California fundamentals continued to improve, with increasing tenant demand driving leasing activity.

The third-quarter sales included a 22-property portfolio of 5.2 million square feet for $1.2 billion and three owner-user sales totaling $86.0 million. Year to date, the company disposed of 37 properties for $1.5 billion. It stabilized one 46,653-square-foot repositioning project with a 13.8% weighted average unlevered return on cost. Year-to-date repositioning and development leasing totaled 783,643 square feet, or $17.5 million of annualized Cash NOI. Full-year repositioning and development annualized stabilized Cash NOI guidance remained $16 million to $18 million.

The company repaid $485.0 million of debt, including $60.0 million of 2026 maturities and $425.0 million of 2027 maturities, and reduced Net Debt to Adjusted EBITDAre to 3.8x from 4.5x as of June 30, 2026. Outstanding debt was $2.8 billion at a weighted average rate of 3.70%, with no floating-rate exposure and a 2.9-year weighted average term to maturity. Liquidity was about $1.7 billion, including $423.6 million of unrestricted cash.

It repurchased 10.9 million shares for $408.7 million at a weighted average $37.59 a share, including $100.0 million after quarter-end, bringing year-to-date repurchases as of October 22, 2026, to $708.7 million. Remaining authorization was $591.3 million. The board authorized a fourth-quarter common dividend of $0.435 a share, payable January 15, 2027.

Updated 2026 net loss guidance is a loss of $1.55 to $1.52 a share, versus a loss of $1.32 to $1.27 previously. Full-year average Same Property Portfolio occupancy guidance is 95.8% to 96.0%. The company said 2026 Core FFO and net loss guidance reflect the in-place portfolio as of October 22, 2026, and expectations related to investment activity.