Rexford Industrial Closes $1.2 Billion Southern California Industrial Portfolio Sale to EQT Real Estate

Rexford Industrial Realty (NYSE: REXR) has completed the sale of a 22-property Southern California industrial portfolio to an affiliate of EQT Real Estate for approximately $1.2 billion, the company announced Sept. 17. CBRE National Partners West served as Rexford's advisor on the transaction.

The deal represents the largest single transaction within Rexford's previously announced $2.0 billion disposition initiative targeting non-core assets, and pushes the company's year-to-date dispositions to $1.5 billion — placing it within its full-year 2026 guidance range of $1.5 billion to $2.0 billion.

Portfolio Details and Pricing

The portfolio comprises 22 industrial properties spread across five Southern California submarkets, encompassing 32 buildings and 5.2 million rentable square feet. Properties average approximately 237,000 square feet each, and the implied price works out to roughly $231 per square foot based on the total consideration and aggregate square footage.

At closing, the portfolio carried a weighted average remaining lease term of 2.7 years, with in-place rents running 28% above current market rates. The company has pegged the portfolio's estimated 2027 cash net operating income yield at approximately 5.5%, a figure that accounts for the anticipated roll-down of above-market rents and expected tenant moveouts as shorter-term leases expire.

The pricing reflects a dynamic common in the current Southern California industrial market: EQT Real Estate is acquiring assets with near-term lease rollover risk — and rents set to reset downward toward market — in exchange for a higher forward yield than stabilized, long-WALT infill assets would typically command. Many Southern California industrial portfolios traded in the 3% to 4% cap rate range prior to 2022; more recent transactions have generally priced in the mid-4% to mid-5% range depending on lease term and rent positioning.

Strategic Rationale for Rexford Industrial

Rexford Industrial characterized the sold assets as non-core within its broader infill Southern California platform, which as of June 30, 2026, comprised 409 properties totaling approximately 49.9 million rentable square feet. The $2.0 billion disposition initiative targets non-core assets and represents a significant upward revision from the company's earlier 2026 disposition guidance of $400 million to $500 million.

"The closing of this transaction reflects the decisive actions we have taken to advance our $2.0 billion portfolio realignment and the strong execution of our team," said Laura Clark, Chief Executive Officer. "With $1.5 billion of dispositions completed year to date, we have made significant progress in strengthening our portfolio, improving the growth and resilience of our cash flow and further enhancing our balance sheet. As we near the completion of our portfolio realignment, Rexford is emerging as a stronger company, better positioned to capitalize on its value creation business model and drive long-term shareholder value."

Year-to-date dispositions of $1.5 billion include $265 million of previously announced transactions, the $1.2 billion Portfolio Transaction, and $86 million of additional dispositions closed during the third quarter.

Proceeds Deployment and Balance Sheet Impact

Rexford has moved quickly to redeploy disposition proceeds. In the third quarter to date, the company used a portion of the proceeds to repay $485 million of debt and repurchase $205 million of common stock. On a year-to-date basis, the company has repaid $492 million of debt and repurchased $505 million of common stock.

Remaining proceeds are expected to be directed toward 2027 debt maturities, opportunistic repurchases under the company's previously announced $1.0 billion share repurchase program, and internal repositioning and development projects. The company estimates its year-end 2026 Net Debt to Adjusted EBITDA ratio at 3.5x.

Rexford reaffirmed its full 2026 guidance in connection with the announcement, as previously provided in its second-quarter 2026 earnings release dated July 23, 2026. Additional transaction details are available in the company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.

Advisors

CBRE National Partners West advised Rexford Industrial on the portfolio sale.