Rexford Industrial Repurchases $200M in Stock, Sells $127.4M Southern California Industrial Portfolio in Q1 2026
Rexford Industrial Realty, Inc. (NYSE: REXR), a real estate investment trust focused on industrial properties in infill Southern California, reported first quarter 2026 financial results on April 23, 2026, highlighted by $200 million in share repurchases, $127.4 million in industrial real estate dispositions, and a new $500 million stock repurchase program authorized by its Board of Directors.
Q1 2026 Financial Results: Net Income Rises, Core FFO Edges Lower
The company reported net income attributable to common stockholders of $87.9 million, or $0.38 per diluted share, for the first quarter of 2026, compared to $68.3 million, or $0.30 per diluted share, in the prior year quarter. Net income included $26.3 million in gains on the sale of real estate and $6.8 million in impairments.
Rexford Industrial's share of Core Funds From Operations (FFO) totaled $139.8 million, a decrease of 0.9% compared to $141.0 million in the first quarter of 2025. Core FFO per diluted share came in at $0.61, down 1.6% from $0.62 in the prior year period. The company attributed the year-over-year decline primarily to the absence of termination fee income recognized in Q1 2025, partially offset by higher net operating income (NOI) contributions from repositioning and development projects and lower general and administrative expenses related to the Co-CEO transition.
Total Portfolio NOI was $185.4 million, a decrease of 4.2% year-over-year. Same Property Portfolio NOI increased 0.9%, while Same Property Portfolio Cash NOI decreased 0.4% compared to the prior year quarter. Average Same Property Portfolio occupancy for the quarter was 96.3%, with ending occupancy at 96.1% as of March 31, 2026.
Industrial Real Estate Dispositions and Capital Recycling
During the first quarter, Rexford Industrial disposed of five industrial properties totaling 314,693 square feet for an aggregate sales price of $127.4 million. The portfolio sale included two sites that had been in the company's near-term development pipeline.
Subsequent to quarter end, the company sold an additional property — a 6.8-acre site at 423-424 Berry Way in Brea, located in the Orange County–North submarket — for $16.5 million, or $56 per land square foot. The vacant site was sold to a merchant builder. Through that disposition, Rexford Industrial said it expects to preserve approximately $31 million in capital that had been associated with the planned development.
As of the earnings release date, the company reported approximately $170 million in additional dispositions under contract or accepted offer, including three properties previously in the near-term development pipeline. The company noted those transactions remain subject to customary due diligence and closing conditions.
$200M Stock Repurchase and New $500M Buyback Program
Rexford Industrial repurchased 5,534,357 shares of common stock during the first quarter for $200 million at a weighted average price of $36.14 per share. Subsequent to quarter end, the Board of Directors authorized a new $500 million stock repurchase program, which supersedes and replaces the prior program and is authorized through April 2028. The company reported full availability under the current program.
"Rexford delivered strong first quarter results driven by record leasing activity and continued execution of our strategic priorities," said Chief Executive Officer Laura Clark. "Our focus on prioritizing occupancy and accretive capital recycling drove outperformance and an increase to our full-year outlook. We are beginning to see early signs of market improvement and remain confident that our disciplined capital allocation, differentiated portfolio and favorable long-term supply-demand dynamics will enable sustained value creation for our shareholders."
Leasing Activity and Rental Rate Trends
Rexford Industrial executed 144 new and renewal leases totaling approximately 4.1 million square feet during the first quarter. Comparable rental rates on those leases decreased 10.0% on a net effective basis and 15.4% on a cash basis relative to prior rents.
A significant portion of the spread compression was driven by a previously disclosed 1.1 million-square-foot lease extension with Tireco, Inc. at 10545 Production Avenue. That lease, originally set to expire in January 2027, was extended through April 2030 commencing February 1, 2027. The above-market in-place lease rate resulted in net effective and cash releasing spreads of negative 31.0% and negative 33.5%, respectively. Excluding the Tireco extension, comparable rental rates increased 5.5% on a net effective basis and decreased 1.8% on a cash basis.
Balance Sheet and Financing Position
Rexford Industrial ended the first quarter with $1.3 billion in total liquidity, comprising $51.7 million in unrestricted cash and $1.245 billion available under its unsecured revolving credit facility. The company carried $3.3 billion in outstanding debt at a weighted average interest rate of 3.7%, with no floating rate debt exposure. The weighted average term-to-maturity on outstanding debt was 3.0 years, with no material maturities until 2027.
The company's Net Debt to Enterprise Value ratio stood at 29.2%, and its Net Debt to Adjusted EBITDAre ratio was 4.5x as of March 31, 2026.
Repositioning, Development, and Dividends
During the first quarter, Rexford Industrial stabilized two repositioning and development projects totaling 144,889 square feet, representing a total investment of $48.6 million. The projects achieved a weighted average stabilized return on cost of 5.3%. The company also leased one 37,844-square-foot repositioning project at 1315 Storm Parkway during the quarter.
On April 21, 2026, the Board of Directors authorized a second quarter 2026 common stock dividend of $0.435 per share, payable July 15, 2026, to stockholders of record as of June 30, 2026. The Board also authorized quarterly dividends on the company's Series B and Series C Cumulative Redeemable Preferred Stock of $0.367188 and $0.351563 per share, respectively, payable June 30, 2026.
Leadership Transition
On April 1, 2026, Laura Clark assumed the role of Chief Executive Officer, and John Nahas assumed the role of Chief Operating Officer, as part of the company's previously announced leadership succession plan. Clark, who was appointed to the Board on November 17, 2025, succeeds Co-Chief Executive Officers Howard Schwimmer and Michael Frankel, who departed their executive roles on March 31, 2026. Schwimmer and Frankel continue to serve as directors on the Board until their terms expire at the 2026 Annual Meeting of Shareholders on May 19, 2026.
On January 1, 2026, David Stockert was appointed as an independent member of the Board of Directors and serves on the Board's Audit Committee.
Updated 2026 Guidance
Rexford Industrial raised its full-year 2026 outlook following the first quarter results. The company now projects net income attributable to common stockholders of $1.22 to $1.27 per diluted share, up from initial guidance of $1.15 to $1.20. Core FFO per diluted share guidance was revised to $2.37 to $2.42, compared to the initial range of $2.35 to $2.40.
The company also updated its Same Property Portfolio NOI growth guidance to negative 2.0% to negative 1.0% on a net effective basis and negative 1.5% to negative 0.5% on a cash basis, both improvements from initial guidance. Average Same Property Portfolio occupancy guidance was raised to 95.1% to 95.6% for the full year. Disposition guidance was maintained at $400 million to $500 million for 2026.
Repositioning and development starts guidance was revised to approximately 1.2 million square feet at a total estimated project cost of $160 million to $170 million, up from the initial estimate of 1.1 million square feet at $140 million to $150 million.
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